
FAQs
Business Valuation
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Most valuations revolve around two essential components:
Cash Flow (EBITDA) – The profit your business generates before interest, taxes, depreciation, and amortization. We make adjustments for owner compensation, personal expenses, and one-time costs to arrive at a true free cash flow figure.
Market Multiple – The factor a buyer applies to your adjusted cash flow. Multiples vary based on industry trends, company size, historical performance, and perceived growth potential.
Our expertise with dozens of transactions and familiarity with different buyers types and considerations allows us to identify a valuation range for your business with high confidence.
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Understanding your valuation guides strategic decisions—whether you plan to sell soon, explore partial ownership transitions, or set growth goals for the future. It helps you maintain realistic expectations and maximizes your ability to plan effectively.
Selling Process
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At Claymore Growth, our six-phase approach is:
1. Preparation – We review your financials, highlight value drivers, and identify improvements well before going to market.
2. Valuation & Strategy – We calculate a custom valuation range and develop a tailored go-to-market strategy.
3. Marketing & Buyer Outreach – We create professional marketing materials, identify potential buyers, and screen them for suitability.
4. Negotiation & Term Sheets – When the right buyers emerge, we negotiate preliminary terms that align with your objectives.
5. Due Diligence – We guide you through the buyer’s in-depth review of your financials and operations, keeping the deal on track.
6. Closing & Transition – We finalize legal documents, manage final negotiations, and help you plan for a smooth handover.
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Most deals conclude within six to nine months. However, timing can vary depending on factors like the complexity of your business, the responsiveness of buyers, and market conditions.
Types of Buyers
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Buyers generally fall into three categories:
• Financial Buyers – Private equity groups or investor coalitions building a larger portfolio through acquisitions.
• Strategic Buyers – Established companies looking to expand geographically, acquire new services, or broaden their customer base.
• Owner/Operators – Individuals planning to assume daily management and grow the business over the long run.
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It depends on your financial goals, post-sale involvement preferences, and the long-term vision for your business. We help you evaluate each buyer type and focus on the options that best align with your objectives.
Working With Claymore Growth
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We use a success-fee structure following the industry-standard Double Lehman scale. You pay nothing unless we successfully close a transaction on your behalf—no upfront retainers or monthly fees.
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You’re not locked in. If you’re unhappy with the offers, the timeline, or anything else, there is no obligation to proceed. Our commitment is based on delivering results, not forcing you into a deal.
Partial vs. Full Sale
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No. A partial sale can reduce personal risk while allowing you to remain involved. This arrangement can be ideal if you’d like to keep growing your company with external investment and sell the rest at a later stage.
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Many buyers appreciate a short transition period to ensure continuity. Whether you stay on for a brief handover or remain involved longer depends on your preference and the buyer’s needs.
Post-Sale Considerations
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Reputable buyers know that a knowledgeable team is vital for continued success. Employees often keep their roles and may see improved benefits or expanded career opportunities under new ownership.
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Consolidation is likely to continue for several years in many sectors. While valuation multiples can shift with market conditions, the appetite for well-managed businesses remains strong.
Additional Questions
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Higher Sale Price
Businesses sold through a professional broker can achieve 10–30% higher sale prices than those sold directly by the owner.”Faster Transactions
Broker-assisted deals can close up to 25% faster on average, minimizing deal fatigue and helping you transition to your next endeavor more quickly.Greater Likelihood of Closing
Working with an M&A advisor increases the likelihood of a successful close by as much as 20–30%, significantly reducing the risk of stalled or failed transactions.
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A business broker facilitates transactions between sellers and buyers. Claymore Growth exclusively represents sellers, providing valuation support, strategic insights, and negotiation expertise all under one roof.
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Contact us for a complimentary valuation or to discuss your specific questions. We’re here to ensure you’re informed, prepared, and confident throughout the entire process.