Most Owners Start With One Question
Very few owners call because they have already decided to sell. More often a partner is ready to retire, a competitor made a casual offer, or the owner simply wants to know where the company stands before the next five years.
The answer matters either way. Price a company too high and it sits on the market until buyers wonder what is wrong with it. Price it too low and the difference walks out the door with the buyer.
A broker who sells companies in this region can tell you what the numbers support today and what would move them.
How Buyers Put a Number on a Company
Buyers pay for earnings they can verify. Sales volume gets attention, but the price follows the profit that shows up on tax returns and in bank deposits.
For most owner operated companies selling under about $2 million, that profit is measured as seller's discretionary earnings. It starts with net income, then adds back the owner's salary, benefits and personal expenses run through the company.
Larger companies with a management team in place are usually priced on EBITDA instead, which treats every salary as a real cost of doing business.
Many established companies sell for roughly two to three times their yearly cash flow. Where yours lands inside or outside that band depends on risk: how much the business relies on you, how many customers carry the revenue, and how clean the records are.
Our guide on how buyers price an established business walks through the math with an example.
What the Local Economy Means for a Sale
The Pikes Peak region has a mix that buyers notice. Military installations and the contractors that support them bring steady payrolls. Rooftops keep spreading east and north, which feeds trades, home services and health care.
Tourism around the mountain carries outfitters, lodging and restaurants. And a large share of residents move in and out on military orders, which keeps moving companies, property managers and childcare busy.
That variety means the right buyer for a roofing company looks nothing like the right buyer for a cleared IT contractor. A broker who knows both groups saves months.
Signs a Company Will Sell Well
- Financial statements, tax returns and deposits that agree with each other
- A team that can run the day without the owner answering every call
- No single customer carrying a large share of revenue
- A lease at market rent with time left on it, or real estate handled on its own terms
- Licenses, contracts and permits that can move to a new owner
Our page on getting your books ready for a business sale covers the records buyers ask for first.
Where the Money Comes From
Many buyers in the lower price ranges use an SBA 7(a) loan. The lender brings its own appraiser and often wants the seller to carry part of the price on a note. Read more on seller financing and SBA loans.
Above a few million dollars, private equity groups and larger competitors join in, and many of them come from outside Colorado. At those prices buyers travel for the right company.
Colorado Paperwork Is Part of the Plan
Colorado Springs collects its own sales tax, separate from the state, and the license does not pass to a buyer. El Paso County taxes business equipment every year. Liquor licenses and unemployment accounts each have their own transfer rules.
The tax and license steps section explains each one in the order sellers usually meet them.
What Happens When You Reach Out
A broker reviews your answers and calls, usually within one business day. The first conversation covers a likely price range, timing and what you want life to look like after the sale. Nothing is marketed without your approval.
If you would rather talk first, call (719) 555-0172 on a weekday, or fill in the short form near the top of this page.