A Fractional CFO Smooths the Business Selling Process.

A Fractional CFO can be one of your most valuable partners. A Fractional CFO smooths the process of selling your business. They bring high-level financial expertise on a flexible basis, helping you get your financials in order, uncover opportunities to increase your valuation, and guide you through the complexities of due diligence. With a clear, well-prepared financial picture, you’ll be in a stronger position to attract serious buyers and negotiate a better deal—without the cost of a full-time CFO.

Clean Up the Financials
A CFO ensures that financial statements are accurate, consistent, and audit-ready. They help organize historical data, normalize earnings (removing one-time or owner-specific expenses), and prepare financial reports that give potential buyers confidence.

Maximize Business Valuation
A CFO identifies opportunities to improve profitability, reduce unnecessary expenses, and optimize pricing or cost structures—boosting the company’s valuation. They also help model different valuation scenarios based on EBITDA, revenue multiples, or future cash flows.

Guide the Due Diligence Process
A CFO anticipates what buyers and their advisors will want to see. They prepare detailed documentation, answer financial questions, and streamline the due diligence process—reducing friction and helping the deal move forward smoothly.

Why this matters –

Overall Market Trends for Selling Businesses

The number of businesses bought and sold grew by 5% in 2024.

The median sale price across all sectors rose by 3% to $345,000.

Median days on the market dropped by 3% to 168 days.

Sale Success Rates

For small businesses, the success rate of selling is estimated to be between 15% to 30%.

For mid-sized businesses, the success rate is estimated to be between 30% to 70%.

Only about 20% of businesses with a listing price under $1,000,000 ever sell.

Less than 1 in 3 businesses listed with a selling price over $2,500,000 ever sell.

Time to Sell

On average, it takes 6 to 12 months to sell a small business.

The average time to sell varies based on the selling price:

Less than $100,000: 199 days (6.3 months)

$100,000-$500,000: 218 days (7.2 months)

$500,000-$1,000,000: 243 days (8.1 months)

$1,000,000-$5,000,000: 291 days (9.7 months)

$5,000,000-$10,000,000: 329 days (10 months)

$10,000,000-$100,000,000: 296 days (9.7 months)

Market Trends

In 2024, the number of businesses bought and sold grew by 5%, with 9,546 closed transactions reported.

The median sale price of businesses sold in 2024 increased by 3% to $345,000.

The average cash flow multiple increased from 2.49 (2023) to 2.57 (2024) -up 3%.

The average revenue multiple climbed from 0.63 (2023) to 0.67 (2024) -up 6%.

Industry Specifics

Service Sector

Accounted for 40% of all business-for-sale transactions in 2024.

Grew by 2% compared to the previous year.

Median sale price increased slightly from $320,000 in 2023 to $325,000 in 2024.

Median revenue declined by 1%, while median cash flow increased by 3%.

In 2024, manufacturing, building and construction, and online and technology sectors saw the most growth, with a combined median sale price of $700,000

Retail Sector

Transaction volume remained unchanged in 2024.

Median sale price increased by 2% to $255,000.

Financial performance was stagnant, with median revenue flat and median cash flow down 3%.

Restaurant Sector

Transaction volume mirrored the retail trend (unchanged).

Median sale price rose by 5%, from $215,000 in 2023 to $225,000 in 2024.

Median revenue dropped by 4%, but median cash flow increased by 4% year-over-year.

Growth Sectors

Three industry sectors saw the most growth in 2024:

Manufacturing

Building and construction

Online and technology

These sectors combined had:

A median sale price of $700,000

A 32% year-over-year increase in transaction volume

These statistics indicate a modest growth in the business-for-sale market, with certain sectors outperforming others and an overall trend towards higher sale prices and faster transactions.

Unfortunately, there are no specific statistics about business sellers or buyers utilizing teams of professionals to prepare for selling or evaluating potential business purchases. It is why hiring a Fractional CFO smooths the business selling process. However, we can infer some relevant information from the available data:

Seller Preparation

While there are no direct statistics on sellers using professional teams, we can note:

Only about 20% of businesses with a listing price under $1,000,000 ever sell, suggesting a potential lack of professional preparation for many sellers.

48% of business owners intending to sell lack a proper exit strategy, which might indicate a lack of professional assistance.

Buyer Evaluation

For buyers, we have more relevant information:

86% reported 3+ stakeholders on their decision committees for new purchases, with 43% reporting 6+ stakeholders.

In large enterprises, more than 60% reported 6+ stakeholders and nearly 30% reported 10+ stakeholders’ involvement.

The typical B2B buying group includes 6-10 decision-makers in every purchase, including finance, IT, leadership and operations team members.

On average, there are 7.4 people in the B2B buying group.

These statistics suggest that buyers often utilize teams to evaluate potential business investments..

Other Notable Statistics

48% of business owners intending to sell lack a proper exit strategy.

90% of business owners’ net worth is tied up in their business.

Only 30% of family-owned businesses survive the second generation of ownership.

82% of businesses cited cash flow problems as a factor in their failure.

These statistics highlight the complexity and challenges involved in selling a business, emphasizing the importance of proper preparation, realistic expectations, and understanding of market conditions. Working with a Fractional CFO smooths the business selling process.

I shall end with a quote from “Begin with the end in mind” which is the second of the seven habits of highly effective people Dr. Stephen R. Covey.

Data Sources:

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