What Alexandria Buyers Check
- Whether customers come back because of the company or because of you
- Lease terms on your space, and how long they run
- Profit that shows on your tax returns, not only in the bank
- Your city and state accounts, current and clean
Old Town Shops and Office Firms
Alexandria mixes two kinds of business. Old Town is full of restaurants, shops, galleries and service companies that live on foot traffic and repeat customers.
The other side is office work. Patent and trademark law firms, consultants, associations and government contractors keep offices near the Patent and Trademark Office and along the Metro.
Trades, home services, health practices and small logistics firms fill out the rest of the city.
Reading the Lease Before a Buyer Does
Some Alexandria owners rent their space and some own the building they work in. Either way, a buyer will read the lease closely.
A month to month lease, or rent far below the market, looks like a risk to them. They plan around market rent, and that can lower your price. Fix the lease before you go to market if you can.
If you own the building, you can sell it with the company, keep it and be the new owner's landlord, or sell it on its own. Talk through each path with your CPA before you decide.
Price and Proof
Most companies selling for under about $2 million are asset sales priced on seller's discretionary earnings. Larger ones are priced on EBITDA.
Many trade at around 2 to 3 times cash flow. Buyers pay only for profit they can verify, so cash kept off the books costs you far more at sale time than it saved in tax. See our valuation page for how buyers figure it.
Contractors and firms that serve agencies should read about federal contractor sales, and food businesses about catering company sales.
Which Offices You File With
A company based in Alexandria files with Virginia, not with DC. The Virginia Department of Taxation handles state taxes, the State Corporation Commission handles entity filings, and the Virginia Employment Commission runs unemployment insurance.
Alexandria is a city and not part of a county, so local taxes go to the city. Its revenue office, which does the commissioner of revenue job here, handles the business license, called BPOL, and the business tangible personal property tax.
Your CPA and attorney cover the rates, deadlines and closing steps. DC filings apply only if the company also operates in the District.
When You Are Ready to Talk
A sale usually takes 7 to 9 months from hiring a broker to closing. The step by step outline shows what happens in that time.
To get a price range, send the form or call (202) 555-0174.