Preparing to Sell a Business
The most critical factor in a successful sale is the cleanliness of your financials. Buyers are disciplined and will heavily discount any business where the numbers are "fuzzy" or personal expenses are deeply intertwined with business operations. You should aim for at least two years of "clean" tax returns and P&L statements that tell a clear, upward-trending story of growth and stability.
Considerations When Selling
When we prepare your business for sale, we look at the financials, but we also look at Owner Dependence. If your business cannot function for 30 days without your direct involvement, it is a high-risk asset that may scare buyers away.
We can help you develop a 2nd-in-command or a leadership team. We can help you document your processes. Buyers want to purchase a sustainable "money-making machine," not a 60-hour-a-week job.
If you are selling a "fixer-upper," we can help you assess offers to give you the fastest and best exit.
Deal Structure
Deal Structure is often more important than the "Sticker Price." A $2M offer that is all cash is often better than a $2.5M offer with heavy earn-outs or seller notes that carry high risk. You must be clear on your post-sale goals. Do you want a clean sale with no future input? Or do you want to stay on as a consultant to ensure the business hits performance targets?
How Is The Value of My Business Determined?
We primarily use a multiple of your "SDE" (Seller’s Discretionary Earnings) or "EBITDA." This involves taking your net profit and "adding back" one-time expenses, personal perks, and interest to show the true earning power of the business. We then apply an industry-standard multiple based on your growth rate, market position, and risk factors.
How long does it take to buy or sell a business? On average, the process takes between 6 to 9 months. The first 60 days are typically focused on preparation and marketing, followed by 90 to 120 days for finding a buyer, and a final 60 to 90 days for due diligence and financing. WHC Lending works to accelerate this by having pre-vetted lenders and buyers ready to move.
Does WHC Lending provide the actual loans? We act as a specialized intermediary and lender partner. We leverage our brand to secure the best possible terms from a network of SBA lenders, private equity groups, and conventional banks. Because we understand the "consulting side" of the business, we can often package your loan application in a way that traditional brokers cannot, leading to higher approval rates.
The WHC Team
To ensure every transaction is bulletproof, WHC Lending utilizes a "Core Deal Team" consisting of an M&A Attorney, a specialized CPA, and a Valuation Analyst. The M&A Attorney is responsible for drafting the air-tight purchase agreements and managing legal risk, while the CPA focuses on tax-efficient deal structuring so our clients keep more of their money. The Valuation Analyst ensures we never overpay for an asset or leave money on the table.
On the operational side, we employ Industry Specialists and Due Diligence Managers. These members do the "boots on the ground" work of inspecting facilities, interviewing key staff (when appropriate), and auditing the technology stack. By having specialists who understand specific sectors (like Healthcare or IT), we can spot red flags that a generalist might miss, ensuring the transition is as smooth as possible.
Finally, our Lending Coordinators and Post-Acquisition Integration Leads bridge the gap between the sale and the future. The Lending Coordinator manages the mountains of paperwork required for SBA or private funding, while the Integration Lead stays with the buyer for the first 90 days. This ensures that the consulting strategies of WHC are applied immediately, helping the new owner find quick wins and solidify their ROI.
Testimonials
WHC hosts events for business owners to network and discuss deals. At a recent event, Founder Will Holmes asked three clients about their experience with WHC. Turn on the volume, hear about their experiences, and schedule a consultation.
Apply for Funding
Maryland remains a top state for SBA lending. Since most deals under $5M are funded via SBA, our dual role as a lender and advisor allows us to offer quick approvals and competitive interest rates. Plus, our network of private equity and top lenders help us fund your deal quickly.
Access our Business Directory
WHC has assisted in the growth of thousands of businesses in Maryland, preparing them to scale and maximize revenue. These trusted relationships allow for off-market opportunities and safer deals.
FAQs
Your Questions Answered: Quick Insights on Financing with WHC
What sets WHC Lending apart from other lenders?
WHC Lending offers personalized, tailored financial solutions with dedicated customer service.
What are the eligibility requirements for obtaining a loan with WHC Lending?
Eligibility depends on factors like credit history and financial stability. Contact a loan officer for specific details.
How long does the loan approval process take at WHC Lending?
Typically, approvals take a few days to a couple of weeks, depending on loan complexity.
Can I pay off my loan early with WHC Lending?
Yes, you can pay off your loan early without any prepayment penalties.
What types of interest rates does WHC Lending offer?
We offer both fixed and variable interest rate loans based on market conditions and your financial profile.
How can I apply for a loan with WHC Lending?
Visit our website to fill out an online application or contact us by phone for direct assistance.