Who Buys Businesses? Understanding the 3 Types of Buyers in M&A A Guide for Business Owners Preparing to Sell Their Company One of the first questions business owners ask when considering the sale of their company is simple: Who actually buys businesses like mine? Many owners focus heavily on valuation and deal timing, but one of the most important decisions in any M&A transaction happens earlier in the process: Choosing the right type of buyer. Different buyers approach acqu

What Is My Family Business Worth? How Buyers Actually Think About Valuing a Company For many founders, this question eventually comes up: “What is my business actually worth?” After years, sometimes decades, of building a company, it’s natural to assume the answer should be straightforward. In reality, valuation is part science, part negotiation, and part market dynamics. The most honest answer is this: A business is ultimately worth what a qualified buyer is willing to pay f

Most business owners assume that selling their company means walking away completely. But that isn’t always the case. In many transactions, founders don’t exit entirely. Instead, they choose a strategy that allows them to take some money off the table while continuing to participate in the company’s growth. This strategy is called a recapitalization , or “recap.” And for many owners, it offers the best of both worlds: liquidity today and upside tomorrow. At Vermilion Rock Adv

There Is No “Normal” Valuation – Only Opportunity to Prepare When business owners begin thinking about selling their company, the same questions usually come up first. What’s a normal valuation?Am I where I should be?What would a buyer actually pay for my business? They’re fair questions. But in most cases, they’re the wrong place to start. Because in the lower middle market, there is no such thing as a “normal” valuation. Two companies in the exact same industry can sell for

A Flexible Way to Bridge Valuation Gaps Without Delaying the Deal In many M&A transactions, the hardest part of the negotiation is not finding a buyer or aligning on strategy. It is agreeing on what the business is worth today versus what it could be worth tomorrow. Sellers often believe the future growth of their company should be reflected in the purchase price. Buyers, on the other hand, prefer to pay based on current financial performance and proven results. When those pe

When business owners think about selling their company, the first question is almost always the same: “What multiple will I get?” It is an understandable focus. The headline price of a transaction feels like the most important number in the deal. But after years working in lower middle market M&A, we have seen something repeatedly surprise business owners. The deal structure often determines how much money you actually keep , sometimes even more than the purchase price itself

What Is EBITDA, and Why Does It Matter When You’re Selling Your Business? When business owners start thinking about selling their company, the first question almost always comes up quickly: What is my business actually worth? At first glance, the answer seems simple. Owners often look at revenue, profit, or the amount of cash in the bank. But when serious buyers begin evaluating a company, the conversation almost always centers on one metric: EBITDA. If you’ve ever looked at