A Number Before a Decision
Most owners who call are not ready to list. They are trying to answer a simpler question. If I sold this, would it be enough?
Enough to retire, or buy out a partner, or step away from the day to day and do something else. You can't answer that without a realistic range, and a realistic range takes someone who sees what companies actually sell for.
That is the call you get. A broker asks about your sales, profit, people and customers, then tells you where buyers would likely land and why. If the number works, you talk about timing. If it doesn't, you know what to work on.
Owners on Both Sides of State Line
The metro doesn't stop at the state border, and neither do buyers. We hear from owners in Kansas City proper, out in Lee's Summit and Independence, up in the Northland around Liberty, and across the line in Overland Park and Olathe.
Our metro towns pages cover what a sale tends to look like in each one, including the paperwork difference between Missouri and Kansas.
The kinds of companies vary as much as the map. Trucking outfits that live on I-70 and I-35, plumbing and landscaping contractors, dental practices and machine shops all call.
So do insurance agencies, auto repair shops and restaurants. See businesses we value for what buyers check in each.
What a Buyer Actually Pays For
Buyers don't pay for sales. They pay for profit they can verify, times the number of years of that profit they are willing to buy.
For companies selling under about $2 million, profit is usually measured as seller's discretionary earnings, or SDE. That is net profit plus your salary and the personal costs the business carries for you.
Bigger companies, where a hired manager already runs things, are usually measured on EBITDA. Many established companies in this range sell for around two to three times their yearly cash flow.
What moves you up or down inside that range is not a mystery:
- Books and tax returns that tell the same story
- A team that keeps the place running when you are gone for two weeks
- No single customer holding a big share of your sales
- A lease, licenses and contracts a new owner can take over
- Steady results, not a sudden spike right before the sale
We explain the math, including the adjustments buyers make, on what is my business worth.
How Buyers Here Pay for a Company
A lot of buyers in this size range use an SBA 7(a) loan, which can go up to $5 million. The lender appraises the business and often asks the seller to carry part of the price on a note.
That note is common enough that every seller should understand it before the first offer. Our page on seller financing when you sell a business walks through how it is usually set up.
Larger companies draw private equity groups and strategic buyers, many from outside the region. A company worth several million dollars can attract buyers from a long way off.
Missouri Paperwork Comes With Every Sale
Missouri lets a buyer hold back part of the price until you show your sales tax is paid. Kansas City, Missouri adds its own 1% earnings tax on business profits, with a final return when you close.
Then there is the Jackson County personal property declaration, the unemployment account and, for some owners, a liquor license. Our seller filings section covers each one in plain words.
What Happens After You Send the Form
A broker reads what you sent and calls you. The first call is about value and timing. You won't be asked to sign anything.
If you would rather talk first, call (816) 555-0167 on a weekday, or fill in the short form and keep your phone close.