Frequently Asked Questions

1. Why should I work with Coastal Business Acquisitions instead of a traditional broker or listing it myself?

Because you are working with a small team that has CPA level financial expertise and real M&A experience, not a listing agent managing forty files at once. The process is faster, more confidential, and structured around your terms. In many engagements we bring capital or an acquisition partner directly, which removes the 10% broker fee from the equation entirely.

2. How do you determine what my business is worth?

We calculate your Seller's Discretionary Earnings (SDE), which represents the total cash flow available to an owner-operator. From there, we adjust for owner benefits, apply industry-appropriate multiples, and factor in market conditions, customer concentration, revenue trends, and how dependent the business is on the current owner. Our CPA and M&A background means you get a valuation grounded in real numbers, not guesswork. Read more: How Much Is My Business Actually Worth?

3. How long does it take to sell a small business?

For most businesses under $5 million, expect 6 to 9 months from initial conversation to closing. Well-prepared businesses with clean financials and documented operations tend to close faster. The biggest factors that affect timeline are the quality of your financial records, the complexity of your industry, and how the deal is financed.

4. Will my employees and customers find out I am selling?

Not until you are ready to tell them. Confidentiality is built into every step of our process. We require signed Non-Disclosure Agreements before sharing any business details, and we only disclose information to buyers who are financially qualified and serious. Your employees and customers learn about the sale on your terms, typically at or after closing. Read more: How to Sell Your Business Without Employees and Customers Finding Out

5. What financial documents do I need to sell my business?

At minimum, you need three years of profit and loss statements, balance sheets, and tax returns. The cleaner and more consistent your records are, the stronger your negotiating position and the faster the deal moves. If your books need work, we can help. Our team has a CPA background, and we routinely help sellers organize and clarify their financials before due diligence begins.

6. What does Coastal Business Acquisitions charge to buy my business?

Our structure depends on the engagement, and it is always agreed before we begin. Traditional brokers charge 8% to 10% of the sale price, which on a $2 million deal runs $160,000 to $200,000. In engagements where we bring our own capital or an acquisition partner directly to the table, there is no commission at all, and the price offered is the price you receive.

7. What happens to my employees after I sell?

In most cases, the new owner retains the existing team. Experienced buyers know that employees are a core part of the business's value. We work with you to build employee retention and transition support directly into the deal structure. If keeping your team intact matters to you, we make that part of the agreement.

8. Can the sale include real estate, equipment, or business debt?

Yes. We structure deals to include leased or owned real estate, equipment, vehicles, inventory, and outstanding business loans. Every deal is different, and we coordinate directly with landlords, lenders, and other stakeholders to make sure the transaction is clean and comprehensive.

9. Can I sell my business if it is not currently profitable?

Yes. Profitability matters, but it is not the only thing buyers evaluate. A business with strong assets, a loyal customer base, recurring revenue streams, proprietary systems, or a valuable brand can still command a solid offer. We look at the full picture and identify the strengths that drive value, even when the bottom line does not tell the whole story.

10. I am in my 60s. When is the right time to sell?

The best time to sell is when you can do it on your own terms, not when you are forced to by health, burnout, or market conditions. If you are in your 60s and the business is performing well, you are in a strong position. Selling now gives you control over the process, the buyer, and the transition timeline. Waiting too long introduces risks — declining energy, market shifts, or unexpected life events that turn a strategic sale into a rushed one.

11. How do I sell my business if it depends heavily on me?

This is one of the most common challenges for small business owners. If you are the primary salesperson, the main client relationship holder, or the only person who knows how things run, buyers see that as risk. The good news is that this can be addressed before the sale. Start by documenting your processes, training a second-in-command, and gradually shifting client relationships to your team. Even six months of preparation can significantly increase your business's value and attractiveness to buyers. Read more: Can I sell my business if it depends on me?

12. What is the difference between selling to an individual buyer versus a private equity firm?

An individual or operator buyer typically plans to run the business personally, which means they are invested in the team, the customers, and the long term health of the company. Private equity firms often acquire to consolidate, cut costs, and resell within a few years. Neither approach is inherently better, but the outcomes for your employees, customers, and legacy can be very different. Part of our job is helping you read a buyer's intent, not just their offer.

13. Do I need a lawyer to sell my business?

Yes. Even in a straightforward sale, you need an attorney who specializes in business transactions to review the purchase agreement, protect your interests, and make sure the deal is structured properly. A good transaction attorney is not an expense — they are insurance against costly mistakes. We are happy to work alongside your legal counsel throughout the process.

14. What is an SBA loan, and how does it affect the sale of my business?

An SBA 7(a) loan is a government-backed loan that many buyers use to finance business acquisitions. It typically requires the buyer to put down 10% to 20% of the purchase price, with the SBA guaranteeing a portion of the loan to the lender. For sellers, this is good news — it means more qualified buyers can afford your business, and SBA-financed deals tend to close reliably because the lender conducts its own due diligence on the business before approving the loan.

15. What should I do right now if I am thinking about selling in the next one to three years?

Start preparing today, even if you are not ready to list. Get your financials organized, reduce your personal involvement in daily operations, document your processes, and diversify your customer base if it is concentrated. These steps do not just prepare you for a sale — they make your business more valuable and easier to sell when the time comes. If you want a confidential conversation about where you stand, we are happy to talk. Schedule a Call

Have a question that is not listed here? Contact us or schedule a free introductory call. Every conversation is confidential.