Frequently Asked Questions

How long does it take to find a buyer and sell a business?
On average approximately 600 to 800 hours over 8-12 months to sell a business. It’s possible to sell a business faster, but you run the risk of selling at a discount if you don’t complete all the steps properly in the right order.
What is your fee?

There are two components of the fee.

  1. The monthly commitment fee which is generally $5k to $10k per month
  2. The success fee which is 3-10% of the sales price depending on size of the business and other factors. 
How do you find buyers?

We have a multi-channel system for finding optimal buyers:

  1. We have an internal database of proven buyers and investors who we are in constant communication with.
  2. We use online business databases to reach buyers agents and brokers.
  3. We use our extensive networks of connections to put your business in front of. 
What if I already have a buyer?

Then Catapult Connect is the product for you. About a million things can go wrong between shaking a buyers hand and actually walking away from the business. Let us use our expertise in negotiations, regulations, and transitions to make sure your deal goes through and that everyone is happy with the deal.

Will the search be confidential?

Yes, we do not include the name of the company or its location in any of the marketing materials.  Prospective buyers receive a one-page teaser containing an owner-approved summary. All buyers sign a Non-Disclosure agreement before receiving the detailed profile.  All industry buyers approached are pre-approved by the client. Some industry buyers will only receive more limited information depending on circumstances.

What typical multiples should the owner expect to see?

Small to medium sized private businesses are not the same as large equity-driven corporations. Multiples are not as useful for these business because they are driven by micro conditions with a lack of competitive data and limited sales information. In addition, small companies often have unique growth opportunities that may not be reflected in traditional valuation metrics. These opportunities could include new product developments, geographic expansion, or strategic partnerships, which may not be adequately captured by applying standard multiples or rules of thumb.

What industries do you work with?

We are willing to work with all types of industries from manufacturers to service providers. We take the time to truly understand your industry so that we can understand what buyers are looking for and we can market to these buyers with compelling and motivating materials.

What industries do you not work with?

We do not have an expertise in restaurants, retail, or medical. However, give us a call. If we don’t feel we can do your business justice, we are happy to make a referral to a firm who can.

What is the difference between Catapult and a business broker?

A business broker is similar to a real estate agent. They work with you on determining a price for the asset and then list that asset on national databases such as BizBuySell.com and others. They then may help with paperwork to complete the transaction.

Catapult Advisory Group is completely different. We use market analysis to come up with a price range, work with the business owner to uncover hidden value in the business, actively solicit bids for the business through our network of buyers and investors and then handhold the seller through the entire process of negotiations through transition.

Do you list prices on a website or in marketing?

No. We are NOT a business broker. We use market analysis to determine a valuation range and then we solicit bids and offers from a wide swath of interested parties. This process invariably maximizes value while ensuring a good fit with the buyer. 

Do you help entrepreneurs or individuals leaving corporate find companies to acquire?

No, we only provide our buy-side advisory services for companies, not individuals, looking to grow through acquisition.

Do you work on a contingent basis?

No, we do not. We limit the number of active clients at one time to ensure we are focused on the success of your engagement.   In order to do that, we require a monthly commitment fee to reserve that spot and our resources.