These are the questions Raleigh, Durham and Triangle owners ask us most before they sell.
Does North Carolina require a business broker license? No. North Carolina has no separate business broker license. However, a North Carolina real estate license is required to broker a deal that includes selling or leasing real estate, including lease assignments and subleases. Most business sales involve a lease, so ask any broker you interview how they handle that part of the deal.
How long does it take to sell a business in the Triangle? Most sales take several months from listing to closing. The biggest factors are price, how clean the financial records are, buyer financing and landlord approval of the lease.
Can I sell without my employees finding out? Yes. We advertise the business without naming it, and buyers must sign a non-disclosure agreement and be screened before they learn its identity. Meetings happen after hours or off-site.
How is my business valued? Most small businesses are priced as a multiple of seller’s discretionary earnings (SDE), the true earnings after adding back the owner’s pay and personal or one-time expenses. The multiple depends on industry, risk, growth and comparable sales. See Business Valuation in Raleigh.
How do buyers pay for a business? Many buyers use SBA-backed loans plus a cash down payment. Some deals include seller financing, where you are paid part of the price over time. Seller financing can widen your buyer pool and sometimes raise the price.
What happens to my lease? Most buyers need the landlord to approve a lease assignment or sign a new lease. Lenders usually want the lease to run at least as long as the loan. We raise this early so it does not delay closing.
Will I owe taxes when I sell? Usually, yes. How the sale is structured, such as an asset sale or a stock sale, and how the price is allocated change what you owe. Talk with your CPA before you accept an offer.
Do I have to stay after the sale? Most buyers ask for a transition period of training and introductions, often a few weeks to a few months. Its length is part of the negotiation.
Which areas do you serve? Raleigh, Durham, Chapel Hill, Cary, Apex, Wake Forest and the surrounding counties in the Triangle and eastern North Carolina.
Have a question we didn’t answer? Call (919) 628-0571.
Written by Occam