# Legal Herald: Business Sales

> A plain guide to selling a small or midsize business: SDE and EBITDA multiples, brokers, confidentiality, deal structure, due diligence, timing and taxes.

Website: https://business-sales.legalherald.com/
Part of: [Legal Herald](https://legalherald.com/llms.txt)
Last Updated: 2026-11-06

## Guide
- [How to Sell a Small Business: Valuation, Deal Terms and Taxes](https://business-sales.legalherald.com/)

## FAQ

### How much is my small business worth?
Most small businesses sell for a multiple of their annual earnings. Owner-run companies are usually priced on seller's discretionary earnings (SDE), and larger companies with management in place on EBITDA. Across businesses sold through BizBuySell's marketplace, recent average multiples have run a little under 3 times cash flow, but your industry, size, growth and risk can move the number well above or below that.

### How long does it take to sell a business?
Plan on six months to a year from preparing the business to closing, and longer for larger or more complex companies. Preparation, finding the right buyer, due diligence and lender approval each take time. Rushed sales usually cost the seller money.

### Should I use a business broker?
Most owners sell only once, and a broker or M&A advisor brings pricing data, a pool of buyers and a process that keeps the sale confidential. Brokers are usually paid a success fee at closing. Owners who already have a committed buyer sometimes sell with only a lawyer and accountant.

### Is it better to sell assets or stock?
Buyers usually prefer an asset sale because they get a stepped-up tax basis and leave behind unknown liabilities. Sellers often prefer a stock sale, especially C corporation owners, because it can avoid a second layer of tax. The right answer depends on your entity type and should be modeled with a CPA before you sign a letter of intent.

### Will I have to finance part of the sale?
Often, yes. Seller notes for a portion of the price are common in small business sales, and SBA lenders frequently expect one. The terms, including interest, length and whether payments are delayed, are negotiated in the letter of intent.

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