BizBuySell seller basics

Sell Your Business on BizBuySell the Right Way

BizBuySell is an online marketplace for buying and selling small businesses. Learn how selling there works, and how to get the price, the details, the buyer and the deal right before you list.

The guide is free. We are an independent education and planning firm, not a broker.

What it is

A marketplace where small businesses change hands

BizBuySell is an online marketplace for buying and selling small businesses. Think of it as a shop window: your business sits next to many others, and buyers search the window to find a fit. Three groups use it.

Sellers

Owners list a business for sale, share the numbers and details, and field inquiries from interested buyers.

Buyers

Individuals, investors and companies browse listings by industry, location and size, then reach out to the ones that fit.

Brokers

Business brokers also use it, to list the businesses they represent and to be found by owners who want help selling.

According to BizBuySell, owners can list established businesses, closed-business assets, business real estate and start-up opportunities. See BizBuySell’s seller page (opens in a new tab) for what it offers today.

How it works

Selling on BizBuySell, step by step

Six stages, from first prep to closing day. Each one sets up the next.

1

Prepare

Gather your financial statements and tax returns for the last few years, tidy your records and decide what you want from a sale.

Tip: start here. Every later step gets easier.
2

Value

Work out your earnings (SDE or EBITDA), look at comparable sales and use valuation tools as a cross-check.

Tip: aim for a range you can explain.
3

Create the listing

Set up an account, describe the business and add financial highlights and photos. You choose how much to reveal, including a confidential “blind” listing.

Tip: be specific and honest.
4

Choose a listing option

BizBuySell offers listing levels and terms with different exposure and features. Match the option to your timeline and budget. For prices and terms, see BizBuySell’s current listing options (opens in a new tab).

Tip: do not choose on cost alone.
5

Manage inquiries and NDAs

Buyers will get in touch. Reply quickly, screen for fit and funding, and ask serious buyers to sign a non-disclosure agreement (NDA) before you share sensitive details.

Tip: keep a log of who has seen what.
6

Negotiate and close

Work through offers, price and terms, then due diligence. Bring in your attorney and accountant before you sign anything.

Tip: price is only one part of a deal.

This is a plain-English overview. BizBuySell’s own seller resources (opens in a new tab) covers each stage in more depth.

The four rights

Get four things right before you list

A fair price, a clear listing, qualified buyers and sound terms work together. Weakness in one can drag down the others.

01

Right Price

Can you defend the number?

02

Right Details

Does the listing tell the truth, clearly?

03

Right Buyer

Who is a real fit?

04

Right Deal

What matters beyond price?

Want all four in one checklist?

The free guide walks through each right, with prompts to work through before you list.

Valuation basics

Know what the business is worth before you name a price

Price is where most sellers get stuck. Two terms and one idea cover most of it.

Common for owner-run businesses

SDE: seller’s discretionary earnings

Earnings with one owner’s pay and benefits, personal expenses and one-time items added back. It shows the total cash flow a single owner-operator could take from the business.

Common when a team runs it

EBITDA: earnings before interest, taxes, depreciation and amortization

A measure of operating profit that usually assumes a manager is paid a market wage. It is more common for larger businesses that do not rely on one owner.

Earnings times a multipleSimplified
  • EarningsSDE or EBITDA, from clean records
  • MultipleA range that varies with industry, size and risk
  • Value rangeA starting point for your asking price

Use a multiple built on the same kind of earnings. Do not apply an SDE multiple to EBITDA, or the other way round. The layout is simplified and the figures are not shown on purpose.

What raises or lowers valueIllustrative comparisons
Tends to lower valueTends to raise value
  • The owner holds every key customer relationship
    Customers know the team and the brand
  • A few customers make up most of the sales
    Sales are spread across many customers
  • Records are incomplete or inconsistent
    Several years of clean, reconciled financials
  • Earnings swing up and down
    Steady or growing earnings
  • Processes live in the owner’s head
    Written processes the team follows
  • Lease or key contracts are uncertain
    Lease and key contracts are clear and transferable

Illustrative comparisons, not measurements or scores.

A sanity check

Use BizBuySell’s valuation tools as a second opinion

According to BizBuySell, its valuation tools draw on comparable listings and sales. Use them to see whether your number is in a sensible range, then compare with your own earnings and records. An online estimate is a starting point, not an appraisal, and the right price is the one you can support.

Your options

Selling yourself or using a broker: which fits?

Neither route is better for everyone. It comes down to how much time you have, how complex the business is and how much of the process you want to own.

Selling it yourself

You run the sale

VS
Working with a broker

A professional runs more of it

Choosing a broker

Browse before you decide

You do not have to hire anyone to list. If you want help, BizBuySell’s directory is a place to research brokers and compare how they work. Treat it as a starting point and do your own checks. Out of the Box Consultants is not a broker and does not recommend one.

Before you list

Is your business ready to list?

A buyer is really paying for earnings that keep coming after you leave. The less the business depends on you, the less risk a buyer has to price in, so making it less owner-dependent can make it more attractive.

That work is its own project. Our plan for Business Growth and Scaling maps where the business leans on you and puts the fixes in order. We deliver written plans and recommendations only. Out of the Box Consultants is not a broker and does not list or sell businesses.

Readiness checklist

Free guide

How to Sell Your Business on BizBuySell

A practical, plain-English guide for owners who are thinking about listing a business. It follows the four rights, in order, so you can prepare before you pay for a listing.

What’s inside

A free download from Out of the Box Consultants. General education, not advice.

Send me the free guide

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FAQ

Straight answers about selling on BizBuySell

Still have a question? Ask us during a free consultation.

BizBuySell is an online marketplace where businesses are listed for sale and buyers search for them. Sellers, buyers and business brokers all use it. You can read how it describes the service on BizBuySell’s seller page (opens in a new tab).

No. Owners can list a business themselves, and BizBuySell says it is a marketing platform, not a brokerage. Many owners still hire a broker for help with valuation, marketing, buyer screening and negotiating. Brokers charge a fee, so ask about it up front. You can research brokers in BizBuySell’s broker directory (opens in a new tab).

Listing options, terms and prices change, so we do not quote them here. See BizBuySell’s current listing options on its seller page, then compare them with your timeline and budget before you choose.

Start with clean financials and work out your earnings as SDE or EBITDA. Then look at comparable sales and the multiples that tend to fit your industry and size. BizBuySell’s valuation tools (opens in a new tab) can be a sanity check. For a higher-value business, many owners also ask a broker or a qualified appraiser for a professional opinion. Our EBITDA and valuation page explains the basics.

Often, yes. According to BizBuySell, you choose how much to reveal in a listing, and a confidential, or blind, listing limits details such as the location and photos. Many sellers also ask serious buyers to sign an NDA before sharing sensitive information. Ask your attorney how to word it.

It varies a lot. BizBuySell notes that every business is different: some sell faster, some take longer and some do not sell. Plan for months rather than weeks, and keep running the business well while you wait.

No. We are not a broker, and we do not list, market or sell businesses. We deliver written plans and recommendations, such as a valuation review or a plan to make the business less owner-dependent. The free guide is general education to help you prepare.

Your next step

Thinking about selling? Start with a clear plan.

A free consultation is a good place to talk through where your business stands before you list. We deliver written plans and recommendations, not brokerage.

Your first consultation is free, by phone or Zoom. We are not a broker and do not list or sell businesses.

Out of the Box Consultants is not affiliated with, endorsed by, or sponsored by BizBuySell. BizBuySell is a trademark of its respective owner. This page is general education, not legal, tax, financial or valuation advice.