Seller Success Path
The WHC Team will lead you though the sales process, ensuring that we list and market your business, screen offers, assist with funding where needed, and bring you to the closing table. To get started, we will need some documentation from you and an agreement for us to list the business for sale. Below, we detail the steps. If you are ready to officially start, click the green button to begin.
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.
WHC 10 Steps for Success- Phase 1
Phase 1: Preparation & Valuation
1. Initial Discovery & Prequalification: After a potential seller contacts WHC, we conduct a high-level interview to determine the seller's motivation and timeline. We work to understand the "story" behind the business. We prequalify the business internally to ensure it meets our Acquisition Criteria (e.g., EBITDA of $250k–$5M).
2. Financial Recasting & Valuation Analysis: We collect three years of tax returns and P&Ls. We perform a "recasting" of the financials to identify Seller’s Discretionary Earnings (SDE) by adding back one-time expenses and owner perks. We apply industry-standard multiples to provide the seller with a Most Likely Sales Price (MLSP). We provide operational and technical coaching to help you implement changes that will increase the value of your business.
3. Execution of Engagement Agreement: Once the seller agrees on the valuation range, we sign a formal Listing/Engagement Agreement. This document outlines our commission structure, the exclusivity period, and WHC’s role as the lead broker and possibly the lending advisor.
WHC 10 Steps for Success- Phase 2
Phase 2: Marketing & Vetting
4. Creation of Marketing Materials: We draft the Blind Teaser (for public listing) and the comprehensive Confidential Information Memorandum (CIM). We ensure the CIM highlights the "consulting" value—such as AI growth potential—that a buyer can leverage post-purchase.
5. Strategic Listing & Targeted Outreach: WHC lists the business on professional exchanges and taps into our WHC Partner Network. We reach out to strategic buyers in our database of pre-qualified entrepreneurs who are looking for businesses in that specific industry.
6. Buyer Vetting & NDA Management WHC handles responding to inquiries by requiring a signed Non-Disclosure Agreement (NDA) and a Proof of Funds (POF). Only then do we release the CIM. WHC conducts confidential interest calls to ensure the buyer has the management experience necessary to be approved by a lender later.
WHC 10 Steps for Success- Phase 3
Phase 3: The Deal & Closing
7. Offer Negotiation & LOI Execution WHC manages the "bidding war" if multiple buyers are interested. We review Letters of Intent (LOIs), focusing heavily on the deal structure (cash vs. seller notes). Help the seller select the buyer with the highest probability of closing.
8. Due Diligence & Loan Packaging This is where WHC Lending shines. While the buyer performs their Due Diligence (using your checklist), you simultaneously build the Loan Package for the lender. By managing both sides, you ensure the lender’s underwriter doesn’t find anything the buyer’s CPA missed.
9. Purchase Agreement & Final Contingencies Work with the M&A attorneys to move from the LOI to the formal Asset Purchase Agreement (APA). Resolve any "findings" from due diligence (e.g., equipment repairs or price adjustments) and ensure the lease assignment or franchise transfer is approved.
10. The Closing Meeting & Handoff Coordinate the final meeting where all parties sign the transfer documents, the lender funds the loan, and the keys are handed over. Ensure your commission is wired directly from escrow. Post-closing, offer the buyer a "consulting transition" package through Will Holmes Consulting to ensure their new venture thrives.
Sellers Often Ask
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? Sometimes. If the buyer agrees, 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.
Our Fees
1. The Initial Fee (The Retainer/Valuation Fee): $3499
This is paid at the time of signing the Engagement Agreement.
What it covers: Professional valuation, creation of the Confidential Information Memorandum (CIM), "recasting" of financials, and listing costs. Coaching you to build the most value in your business. This fee is credited against the success fee at closing.
2. The Success Fee: 9%
This is paid only when the deal successfully closes and funds. If the agreement expires, but the seller sells the business to a buyer we introduced within the next 24 months, the seller will still owe WHC the full commission.
If the seller receives a full-price offer that meets all their criteria and they simply change their mind and decide not to sell, the seller owes WHC a portion of the fee (1%) for our work performed.
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.
Initial Discovery & Prequalification
Phase 1: Preparation & Valuation
1. Initial Discovery & Prequalification
2. Financial Recasting, Valuation Analysis & Coaching
3. Execution of Engagement Agreement
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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.