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For Business Owners

Considering a Transaction?

Understanding what drives valuation, how transactions are structured, and what to expect from a confidential sale process.

Valuation

What Drives Valuation Multiples

EBITDA Quality

Buyers pay premiums for clean, recurring, and growing earnings streams with defensible margins.

Revenue Diversification

Customer concentration above 20% compresses multiples. Diversified revenue commands higher valuations.

Management Depth

A business that operates without its founder is worth materially more than one that depends on them.

Growth Trajectory

Demonstrable, organic growth over 3+ years creates a compelling forward-looking investment thesis.

Recurring Revenue

Contractual or subscription-based revenue models receive premium multiples from acquirers.

Operational Systems

Documented processes, clean data, and scalable systems signal institutional readiness to buyers.

Fundamentals

EBITDA vs Enterprise Value

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) represents the normalized cash earnings of your business — the metric most acquirers use as the foundation for valuation.

Enterprise Value is calculated by applying an industry-appropriate multiple to your adjusted EBITDA. For example, a business with $3M adjusted EBITDA at a 6x multiple yields an $18M enterprise value.

The multiple applied depends on growth, risk profile, market dynamics, and buyer type. Our role is to maximize that multiple through preparation and competitive process management.

Process

Confidential Process Overview

Every engagement begins with a confidentiality agreement. No information is shared with any party without your explicit approval.

We create a comprehensive investment thesis, identify and pre-qualify buyers, manage all communications, and negotiate on your behalf — protecting your identity and business operations throughout.

You remain in control at every stage. No commitment to sell is required until final terms are agreed upon.

Timeline

Typical Timeline: 6–9 Months

Months 1–2Preparation & Valuation
Months 2–4Market Outreach & Buyer Engagement
Months 4–6LOI Negotiation & Due Diligence
Months 6–9Definitive Agreements & Closing

Risk Factors

Common Value Killers

Customer concentration above 25% of revenue
Owner-dependent operations with no succession plan
Declining or stagnant revenue trends
Unresolved legal, environmental, or regulatory issues
Poor financial record-keeping or undocumented add-backs
Key employee risk without retention agreements

Common Questions

Frequently Asked Questions

What is M&A advisory?

M&A (Mergers & Acquisitions) advisory involves a professional firm representing a business owner through the process of selling their company. An M&A advisor handles valuation, buyer identification, negotiations, and closing — ensuring the owner achieves maximum value while maintaining confidentiality.

How long does it take to sell a business?

A typical M&A transaction takes 6–9 months from engagement to closing. This includes preparation and valuation (months 1–2), buyer outreach (months 2–4), LOI negotiation and due diligence (months 4–6), and definitive agreements and closing (months 6–9).

What is EBITDA and why does it matter?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It represents the normalized cash earnings of your business and is the primary metric most acquirers use to determine valuation. Enterprise value is calculated by applying an industry-appropriate multiple to your adjusted EBITDA.

What size businesses does CBH Business Group work with?

We specialize in privately held businesses valued between $3M and $50M in enterprise value, focusing on sell-side advisory for owners ready to explore a strategic exit or sale transaction.

What drives business valuation multiples?

Key drivers include EBITDA quality, revenue diversification, management depth, recurring revenue models, documented operational systems, and a credible growth trajectory. These factors collectively determine the multiple applied to your earnings.

Is the sale process confidential?

Absolutely. Every engagement begins with a confidentiality agreement. No information is shared without your explicit approval. We use NDA-protected outreach and never publicly list businesses for sale.

Request a Confidential Assessment

No obligation. Complete discretion.

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