Start With the Price, Not the Listing
Most owners who contact us aren't ready to put a company on the market. They are deciding whether a sale would pay for retirement, a new venture or a partner buyout, and they want a grounded number first.
The first call gives you that. A broker explains the likely price range, the two or three things pulling it down, and how long a sale would probably take from here.
The Owners We Hear From
Our callers run established companies with about $1 million or more in yearly sales. Many sell services: federal contracting, technology, design, staffing, building trades, food service and logistics.
Some have a retirement date in mind. Some have a competitor or a private equity firm asking questions and want to know what the company is really worth before they answer.
We cover the District itself plus the close-in suburbs in Maryland and Virginia. The locations page explains how that works when your company sits outside DC.
What a Buyer Pays For
Buyers pay for earnings they can verify. For most companies selling for under about $2 million, the measure is seller's discretionary earnings: profit plus the owner's salary, benefits and one time costs.
Larger companies with a management team in place are usually priced on EBITDA. Either number is multiplied by a figure that reflects risk, and many Main Street companies sell for roughly two to three times cash flow.
The business valuation page covers what pushes that multiple up or down. In short, buyers reward:
- Tax returns and financial statements that agree with each other
- A team that can do the work when you are not in the room
- Revenue spread across many clients, not two or three
- Contracts, leases and licenses a new owner can keep
DC Has Its Own Closing Rules
The District taxes and licenses businesses on its own terms, and a few of its rules surprise sellers. A buyer of business assets has to notify the Office of Tax and Revenue before paying you, or it can be held responsible for your unpaid DC taxes.
Partnerships and LLCs pay a DC franchise tax that most states don't have, and the gain on a final sale counts. Equipment brings a personal property return every July.
Our DC closing paperwork guides explain each filing so your CPA and attorney aren't starting from scratch.
Contractors and Clearances
A large share of companies here work for federal agencies, directly or as subcontractors. Those sales carry extra steps: contracts may need agency approval to move, small business status may change, and cleared staff matter a great deal to buyers.
Our page on selling a federal contractor covers what buyers look at first.
Who Sees Your Request
We are an introduction service, not a brokerage. Your request goes to one brokerage partner that values and sells companies in this area. That partner may pay us a referral fee. You pay us nothing.
To begin, fill in the two short screens at the top of this page, or call (202) 555-0174 on a weekday.
