Frequently Asked Questions
Common questions about selling a business, valuations, deal structure, and Neo Advisory's process.
How long does the entire sale process take?
A well-run transaction typically takes 6–9 months from engagement to closing. This includes 3–5 weeks for preparation and marketing materials, 4 weeks for buyer outreach and indications of interest, 1–2 weeks for management presentations, 6–10 weeks for due diligence, and 2–4 weeks for final negotiations and closing. Transaction complexity, buyer type, and market conditions can all affect this timeline.
Will my employees, customers, or competitors find out about the sale?
Confidentiality is our highest priority. We operate under strict NDAs and control the flow of information at every stage. Buyers receive only a blind teaser profile initially, and no identifying information is shared until they execute a confidentiality agreement. Most employees and customers never learn of a potential sale until just before or after closing.
How are advisory fees structured?
We charge a success fee based on a percentage of the transaction value, typically with a minimum fee. Our structure aligns our incentives directly with yours — we succeed when you achieve an exceptional outcome. We are happy to discuss specific terms during an initial, no-obligation consultation.
Can I stay involved in the business after selling?
Absolutely. Many transactions include transition periods or ongoing roles for sellers. Private equity buyers frequently want sellers to retain a minority stake and continue in a leadership role. Strategic buyers may offer consulting agreements or employment contracts. Your desired post-sale involvement is a key factor we consider when positioning your business and evaluating offers.
What is due diligence, and how disruptive is it?
Due diligence is the buyer's comprehensive review of your business — covering financials, legal, operational, HR, and customer details. We manage this process closely through a structured virtual data room and serve as a buffer between you and buyers to minimise disruption to your daily operations. Preparation before going to market significantly reduces the burden when due diligence begins.
How do I prepare my business for sale?
Preparation should ideally begin 1–2 years before going to market. Key steps include cleaning up financial statements, documenting key processes, reducing customer concentration, strengthening your management team, and addressing any legal or compliance issues. We provide a detailed preparation roadmap during our initial engagement and work with you to maximise value before approaching buyers.
How is my business valued?
Businesses in the lower middle market are typically valued on a multiple of Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation). The specific multiple depends on factors such as industry, growth rate, customer concentration, recurring revenue, management depth, and current M&A market conditions. We conduct a thorough analysis and benchmark against recent comparable transactions to provide an accurate valuation range.
What is EBITDA and why does it matter in M&A?
EBITDA — Earnings Before Interest, Taxes, Depreciation and Amortisation — is the primary measure of operating profitability used in middle-market M&A. Buyers and their lenders use it to assess how much debt a business can service and what multiple they can justify paying. Adjusted EBITDA adds back non-recurring or owner-specific expenses to reflect the true earning power of the business under new ownership.
What makes a business attractive to buyers?
Buyers look for businesses with strong, defensible earnings, diversified customer bases, capable management teams, documented processes, and clear growth potential. Recurring revenue, low customer concentration, clean financial records, and a sustainable competitive advantage all drive premium valuations. We help clients identify and address potential concerns before going to market.
What is the difference between a strategic buyer and a financial buyer?
Strategic buyers are operating companies in the same or related industry looking to grow through acquisition. They often pay premium valuations because of synergies they can realise. Financial buyers — primarily private equity firms — acquire companies as standalone investments or add-ons to an existing platform. They focus on growth potential and typically retain existing management. Each buyer type has distinct advantages depending on your goals.
What is an LOI and is it binding?
A Letter of Intent (LOI) outlines the proposed terms of a transaction, including price, structure, and key conditions. Most LOI provisions are non-binding — either party can walk away during due diligence. However, certain provisions such as exclusivity (no-shop clauses), confidentiality, and expense allocation are typically binding. We help negotiate LOI terms that protect your interests while keeping the process moving forward.
How do I access your deal flow?
Simply register your acquisition criteria through our buyer network form. Once registered, we will review your profile and begin sending you pre-vetted opportunities that match your investment thesis — including off-market and early-stage deals before they reach the broader market.
What types of businesses do you represent?
We focus on founder-led businesses in the automotive aftermarket, professional services, and business services sectors, with revenues of $3M–$50M. We represent businesses across all stages of the transaction process — from initial positioning through closing.
Is there a fee for buyers?
No — buyers are never charged a fee. Our advisory fees are paid exclusively by sellers. This means you gain access to proprietary deal flow, pre-qualified opportunities, and our team's expertise at no cost to you.
How quickly can a deal close once we identify an opportunity?
Timeline depends on transaction complexity and buyer readiness. We have closed transactions in as few as 60 days for well-prepared deals with motivated parties. A typical process runs 3–6 months from initial introductions through closing, including due diligence and documentation.
What is your typical deal size range?
We focus on the lower middle market, with deal sizes typically ranging from $5M to $50M in enterprise value. We selectively work on transactions outside this range when there is a strategic rationale or an established relationship with the buyer.
How are opportunities screened before being presented to buyers?
Every opportunity is pre-qualified before presentation. We assess seller motivation, business quality, financial stability, and transaction viability. You only receive deals we believe meet your stated criteria and represent genuine transaction opportunities — not every listing that comes to market.