FAQs

We get it - selling a business is one of the biggest decisions an entrepreneur will make. Below are a list of FAQs to support you in making a decision of working with Breakwater M&A.

Have specific or confidential questions? Please schedule a call with us below or join an upcoming livestream session.

Schedule a confidential call
Join Upcoming Livestream (anonymous)

  • Our success fee ranges between 3% to 10% depending on the size of your business (bigger business = small fee).

    We also charge a small upfront or monthly fee that is subtracted off the success fee at closing.

    The purpose of the upfront fee is to ensure we’re both invested in the process as we invest hundreds of hours on each deal.

  • The internet will tell you there is a bunch of ways to value a business.

    In reality, most of our clients businesses are valued based on a multiple of the businesses profit.

    Note: calculating profit for M&A deals is more complicated than looking at your taxable income. This is why we offer a free valuation for entrepreneurs - even if they are not planning to sell in the near future.

  • EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) measures profitability and is a key factor in determining your business’s value.

    Buyers often use EBITDA to assess investment potential.

    Calculating your company’s EBITDA correctly is super important. Talk with our team to get a free consultation here.

  • The boring answer = it depends.

    That being said, our general guidance is that it often takes 6-8 months to sell a business.

    However it is not uncommon for a sale to take over 12 months. Watch this video to get our full breakdown on this question.

  • Most of our clients already have tons of inbound buyer interest - so why hire Breakwater?

    Well, these clients also want to maximize their exit potential with the least amount of work possible. This is where Breakwater comes in to generate far more value than our fees.

  • Many businesses fail to sell due to a lack of preparation before going to the marketplace.

    Being ‘ready’ to sell really depends on your businesses unique situation. In a few words, it’s making sure all your financial records, contracts (customer/employee) are up to date.

    It also requires the ability for your business to operate under new ownership, which is difficult if you’re essential to business operation as an owner.

    Curious if you’re ready to sell or not? Start with our a free consultation call with our team here.

  • Breakwater M&A is industry agnostic (a fancy word to say we work in various industries).

    That said, historically we have had great success working with service and software companies with revenues between $1M-$20M and are profitable.

  • Yes! You can read all our public case studies here.

    Book a confidential call with us to hear our other (not public) case studies and testimonials.

  • Our team has been working in M&A since 2019 and in that time has facilitated over $150M in closed transactions and 50 M&A deals.

  • The short answer is that a majority of businesses are sold based on their cash-flow/profitability. You can learn more about business valuations and the process of selling a business here.

    That being said, each industry has different metrics that buyers use to assess the value of a business.

    To learn the value of your business (for free) get started by booking a confidential call with our team here.

  • In addition to our proprietary database of over 10,000 buyers we leverage industry-leading tools to search and find the most qualified buyers for your business.

    We will also work with you to understand the competitive landscape for your business and who might be a strong strategic buyer - these are typically the highest bidders of a business for sale.

  • A business exit strategy is a plan for transitioning ownership while maximizing financial returns. Breakwater M&A helps create customized exit strategies aligned with your goals.

  • Common mistakes include:

    • Poor preparation.

    • Unrealistic valuation expectations.

    • Neglecting confidentiality during negotiations.
      Breakwater M&A mitigates these risks through expert guidance.

  • Selling a business is often more a life decision than a business one - making it difficult to know the ‘right time’.

    The most common reasons people sell their business are: retirement, a significant personal life change, burn-out, and/or exploring a new project.

    Breakwater M&A assists clients in evaluating timing by analyzing industry trends and helping you plan a strategic exit.

  • Absolutely! Breakwater offers guides, checklists, and personalized advice tailored to first-time sellers navigating the complexities of the process.

    Get started with a free and confidential consultation call HERE.