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Washington DCBusiness Brokers Group (202) 555-0174

Selling a Company in Bethesda, MD

Bethesda owners run practices, research firms and professional offices that buyers across the region watch. Washington DC Business Brokers Group introduces those owners to a brokerage partner.

The sale itself works much like one in the District. The filings around it do not.

Rather talk first? Call (202) 555-0174

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Before a Bethesda Buyer Signs

  1. Three years of clean, tax reported profit that a lender can follow
  2. How much revenue comes from your top few clients or one agency contract
  3. Whether the practice or firm runs without you in the room
  4. A lease with real terms, not a handshake with the landlord
  5. Maryland tax and SDAT accounts in good standing

The Companies Buyers Find Here

Bethesda sits in Montgomery County, a short drive from the District line. NIH and Walter Reed are both here, and a lot of local work grows up around them.

That means research and lab services firms, consultants who serve health agencies, IT and data shops, and federal contractors.

It also means dental and medical practices, law and accounting offices, and the restaurants and shops that feed a large daytime crowd.

Buyers follow that mix. Regional firms want to add staff and contracts. Clinicians and professionals want a practice with patients or clients already in place.

Larger companies, some backed by private equity, look at the firms with the biggest profits and a team that runs without the owner.

How Price Gets Set

A company selling for under about $2 million is usually priced on seller's discretionary earnings, what one working owner takes home. Bigger firms are priced on EBITDA, after a fair salary for the person running it.

Many smaller deals trade around 2 to 3 times cash flow. Firms that lean on one agency or one referral source get marked down.

If a few clients bring in more than about 15 to 20 percent of revenue, expect buyers to ask hard questions. Our valuation page walks through the math.

If you hold federal work, read our notes on selling a federal contractor. Contracts don't move to a buyer on their own, and the agency has to approve a novation in an asset sale.

Maryland Paperwork, Not District Paperwork

A company based in Bethesda files with Maryland, not with DC. The Comptroller of Maryland handles income and sales tax. The State Department of Assessments and Taxation, SDAT, handles entity filings and the annual personal property return.

Unemployment insurance goes through the Maryland Department of Labor. Your CPA and attorney handle the state rates, deadlines and closing steps, and they will tell you what a buyer needs to see from each office.

DC filings apply only if the company also operates in the District, for example with an office or staff working there.

Where you live and where the company runs can also differ. Ask your CPA how each one is taxed.

Timing a Sale

From hiring a broker to closing usually takes 7 to 9 months. Keep revenue steady while it happens, since a dip in the middle of a sale makes buyers nervous. The step by step outline shows the order things happen in.

To hear what your company might bring, send the short form or call (202) 555-0174.

Call (202) 555-0174