How to Sell Your Business: A Founder's Exit Planning Guide
, by Tyler Nix, Gungnir Group
A practical guide for business owners exploring a sale: valuation basics, what buyers look for, how the process works, and how to prepare for a clean exit.
Frequently Asked Questions
- What is the difference between SDE and EBITDA?
- SDE (Seller's Discretionary Earnings) adds back the owner's salary and personal expenses to net income and is used for businesses where the owner is central to operations. EBITDA is used for companies with a management team in place and does not add back owner compensation. Buyers will apply different multiples to each.
- How long does it take to sell a business?
- From first contact to close, most acquisitions take 60-120 days with a motivated seller and a prepared buyer. Deals that take longer usually stall during due diligence because the financials are unclear or unexpected issues surface.
- Do I need a business broker to sell?
- Not necessarily. Brokers add value when you do not know how to find buyers or when you want a competitive process with multiple bidders. If you have identified a specific buyer you trust, you can negotiate directly and save the broker fee (typically 8-12% of sale price).