Small Business Broker vs Lower Middle Market M&A: Understanding the $3 Million EBITDA Dividing Line
The market for selling private companies in the United States operates across a spectrum of deal sizes, each characterized by distinct intermediaries, buyer profiles, valuation methodologies, and transaction structures. At the center of this spectrum lies a critical inflection point: approximately $3 million in earnings before interest, taxes, depreciation, and amortization (EBITDA). This threshold marks […]
How to Sell a Small Business Without a Broker
Selling a small business without a broker is both feasible and increasingly common among owners of enterprises valued under $5 million. The decision to pursue a direct sale rather than engage intermediaries stems from multiple motivations: cost control, transaction privacy, relationship preservation with buyers, and the belief that no external party understands the business better […]
What Is SDE? Seller’s Discretionary Earnings Explained
Valuation Fundamentals What Is SDE? Seller’s Discretionary Earnings Explained SDE measures what a business actually delivers to a single owner-operator. It sets the valuation, the debt an acquirer can raise against the business, and how much of the price arrives at closing. By Jeff Barrington, Founder and Managing Director · Last reviewed August 27, 2026 […]
What Happens When Employees Find Out You’re Selling Your Business
When a mid-market software company’s CFO casually mentioned an upcoming transaction to a trusted senior developer in 2023, the owner assumed discretion was implied. Within 72 hours, twelve of seventeen engineers had updated their LinkedIn profiles to “open to opportunities.” The buyer, conducting final due diligence, discovered the exodus through routine reference checks. The purchase […]
Private Equity Concerns: How Founders Can Protect Their Companies During a Sale
The decision to sell to private equity represents one of the most consequential moments in a founder’s career. While PE firms bring capital, operational expertise, and growth resources, many entrepreneurs harbor legitimate anxieties about what happens after the transaction closes. The fear of losing control, watching company culture deteriorate, or witnessing aggressive cost-cutting measures dominates […]
EBITDA vs Net Income: Key Differences, Metrics, and Insights
When you’re looking at financial metrics, it’s easy to get lost in the details. EBITDA focuses on operating performance, while net income shows the whole financial picture after every expense. EBITDA measures earnings before interest, taxes, depreciation, and amortization, while net income is the final profit after all costs. This core difference makes each metric […]
CARR vs ARR: Key Differences, Formulas, and Business Impact
Subscription businesses often wrestle with picking the best revenue metric to understand their financial health and growth. CARR and ARR both track recurring revenue, but they highlight different aspects of a company’s performance. CARR scoops up future contracted revenue and expected churn, while ARR only looks at current active subscriptions. So, CARR is more forward-looking, […]
Fair Value vs Market Value: Key Differences and Accounting Impact
Valuation Fair Value vs Market Value: Key Differences and Accounting Impact Fair value and market value are not the same number. Each answers a different question, and the distinction changes how assets are reported and how a private company is priced when it is sold. By Jeff Barrington, Founder and Managing Director · Last reviewed […]
How Much Can I Sell My Business For? Key Factors & Valuation Methods
Selling a business is a huge financial move, maybe the biggest one you’ll ever make. But let’s be honest, most owners have no idea what a realistic sale price looks like. The process itself, from preparation through close, is covered in How to Sell a Business. Most businesses sell for 2 to 4 times their […]
Business Valuation Cost: What Affects Price & How to Choose
Getting a business valuation is a must if you’re planning to sell, attract investors, or deal with legal stuff. But wow, the price can swing a lot. A business valuation usually runs anywhere from $2,000 up to $40,000, depending on how complicated your business is, the valuation type you need, and how fast you need […]