Decisions
Exit decisions, compared.
The choices that shape what you walk away with, weighed honestly. Each one lays out both options, where each fits, and the nuance worth taking advice on.
-
Asset Sale vs Share Sale
In a share sale the buyer buys the company itself, so the whole business transfers: every asset, contract, employee and liability, known and unknown, moves with it. In an asset sale the buyer buys selected assets and agreed liabilities, and the legal entity stays with you. Buyers usually prefer asset sales because they can leave risk behind; sellers usually prefer share sales for a cleaner break and often better personal tax. The tax and legal treatment differs by country and is frequently the deciding factor, so take local advice before fixing a structure.
-
Business Broker vs M&A Advisor
A business broker markets your company and helps carry an interested buyer to completion, usually for smaller, simpler sales on a commission-led fee. An M&A advisor runs a structured, targeted process to create competition among buyers and negotiate the terms, which suits larger or more complex deals. Lean towards a broker when the business is straightforward and the likely buyer is known or local; lean towards an M&A advisor when reaching the right buyers, creating tension and getting the structure right will move the outcome. The labels are not standardised across Europe, so judge the individual and their track record, not the title.
-
Earn-Out vs Upfront Payment
An upfront payment gives you the full agreed price at completion, with certainty and a clean break. An earn-out pays part now and ties the rest to the business hitting agreed targets after the sale, which can lift the headline figure but shifts the risk onto you and usually keeps you involved for one to three years. Lean upfront if you value certainty and a clean exit; consider an earn-out only if the gap on price is real and you are confident the business will keep performing, ideally without you.
-
EBITDA vs SDE
EBITDA and SDE are two ways of stating the same underlying earnings, and the difference is one line: SDE adds back one working owner's full salary and benefits, EBITDA does not. SDE suits smaller businesses a buyer will run themselves; EBITDA suits larger businesses with a management team the buyer expects to keep paying. Most owner-managed businesses in the EUR 2m to 10m revenue range sit near the crossover, so which basis applies depends on how the business actually operates rather than on preference. Whichever applies, match the multiple to the basis: an EBITDA multiple applied to an SDE figure, or the reverse, produces a badly wrong valuation.
-
Selling Now vs Waiting to Sell
Selling now captures a firm offer with certainty, but prices your business as it currently is, weaknesses and all. Waiting two to three years to raise your 7 Mills score first can lift both the multiple and the odds of completing, but only if you actually do the work and the market holds. Lean towards selling now if your business is already reasonably ready, if the gains left are marginal, or if a personal reason such as health, burnout or a strong offer sets the timing. Lean towards waiting if your score is low with clear, fixable weaknesses (owner dependence above all) and you have the runway and energy to address them.
-
Strategic Buyer vs Private Equity
A strategic buyer is usually a competitor or adjacent company that folds your business into its own; this can mean the highest headline price and a cleaner, faster exit for you, though the brand and duplicated roles may disappear. Private equity is a financial buyer that keeps the business standalone, grows it over a few years and sells again, so it usually wants you (or a strong management team) to stay and often asks you to reinvest part of your proceeds as rollover equity for a second payout later. Lean strategic if you want out and there is a buyer that gains real synergies; lean private equity if you want to keep building, keep the brand and take a second bite.
-
Trade Sale vs Management Buy-Out
A trade sale means selling to an external buyer, usually another company or an investor, and it typically gets you the highest headline price and more cash up front, but you give up control over what happens to the business afterwards. A management buy-out means selling to your own management team, which protects continuity and confidentiality and can complete with fewer surprises, but the price is usually lower and often paid partly over time, because the team has to raise the money. Lean towards a trade sale if maximising price is the priority and a strategic buyer would value what you have built; lean towards a management buy-out if you have a capable, willing team and continuity matters more than the last euro.
Every one of these turns on your score.
The free 7 Mills Score reads your business the way a buyer will. 15 minutes, results in writing.