Frequently Asked Questions

It is imperative to maintain confidentiality throughout the sale process and to take measures that will guard against competitors, employees, vendors and customers learning of an impending sale. Experienced buyers often attempt to exploit the absence of a qualified advisor by requesting more information than they should be entitled to see without proper qualification. Our involvement is critical to maintaining confidentiality.

These measures include well-written Confidentiality and Non-Disclosure Agreements, marketing and educational documents and thorough buyer identification and qualification procedures, among additional steps. The use of a third party business intermediary greatly enhances the probability of maintaining confidentiality throughout the process by providing a communication layer outside of the company and managing buyer access to information. Information should be given in stages, as necessary and more sensitive matters do not need to be shared with potential buyers until well advanced in the process.

Our extensive experience in handling business transactions enables us to keep up-to-date and highly informed regarding business valuation. Our firm has access to comparative data relative to recent transactions in a wide range of industries so we understand how acquirers perceive value. Based upon our experience, we are in a position to provide you with a valuation range that you are likely to achieve so you can make an informed decision as to whether to pursue a sale of the business now or delay to a future period.

Valuing a company is an art, not an exact science. You cannot apply simple formulas or pricing comparisons, as is the case in real estate. Valuation is expressed in a range rather than a specific number.

The purchase price is only one component of the overall goal. When representing a client, our understanding of all of the available options maximizes the total financial yield to a seller.

We take into account all of the elements of the financial transaction including: yields from a stock sale versus asset sale, amount of initial investment, terms and interest rate on promissory notes, liabilities to be assumed by the acquirer, personal guarantees, employment contracts, consulting agreements, non-compete agreements, current assets to be retained by the seller, earn-outs, stock ownership retention, continuation of perks and fringe benefits (i.e. health insurance), and other pertinent details. The total financial package goes well beyond the base purchase price. In addition, together with counsel we can assist in negotiating indemnification arrangements.

This question is very difficult to answer without knowing the qualifications and background of the acquirer. In general, the more familiar the buyer is with the industry or the required skills sets, the less dependent he or she is on the former owner. The strength or weakness of the management team staying can also impact the answer to this question.

There are two key areas that must be considered in a transition period. The first involves the time required for a new owner to absorb the majority of the operational aspects of the business. The second involves the time and effort required to transition key relationships with customers, vendors and employees. Most transition periods range from several months to one year.

Most intermediaries charge excessive "up front" fees, profiting whether or not they achieve the seller's objectives.

AHM does not charge “up front” fees and has a competitive success-based fee structure that aligns our financial goals with those of our clients. Consequently, we can only accept engagements when we believe there is a high likelihood of realizing your goals and expectations.

Initially we provide feedback regarding the likely valuation range you could expect to receive if you were to sell your Company. This will enable us to mutually confirm whether our opinion of valuation is in line with your expectations. You can then be better positioned to determine whether an exit strategy makes sense to pursue now or delay to a future period. The fee structure will vary depending upon the size of a transaction.


The decision to sell or retain a business is a question pondered by many business owners. Selling a business is a momentous decision and involves critical analysis and contemplation. Depending on your objectives, there are other alternatives such as recapitalizations that can help your monetize a portion of your holdings. AHM can assist you in sifting through various alternatives.