Preparing to Sell

Auction Process

A sale process where multiple buyers compete to buy the company. Why it matters: Competition can improve price and terms, but auctions also require careful confidentiality, preparation, and advisor coordination.

Related terms

Multiple

A shortcut buyers use to value a business. For example, if a business has $1 million of EBITDA and sells for 5x EBITDA, the price is $5 million. Why it matters: Multiples make offers easy to compare, but the “right” multiple depends on what earnings metric is used and how risky or durable those earnings appear to buyers.

Advisor

A professional who helps with the sale, such as a broker, M&A advisor, CPA, attorney, or investment banker. Why it matters: The right advisor can help prepare materials, explain tradeoffs, manage buyers, reduce surprises, and keep the owner from negotiating complex deal terms alone.

More from Preparing to Sell

Blind Profile Confidential Information Memorandum Data Room Deal Timeline Due Diligence Checklist Management Presentation Process Letter Proprietary Deal Sell-Side Readiness Teaser

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