Selling a $1M+ revenue business in Connecticut? Start with a free valuation.
If your company is doing $1M+ in annual revenue, Earned Exits focuses on selling businesses in the $1M–$40M revenue range. A free valuation is a fast way to understand what your business might sell for and what you can improve before you go to market.
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Step 1: Get buyer-ready financials (this is where your valuation is made)
Buyers don’t just buy revenue. They buy confidence. If your financial story is fuzzy, buyers protect themselves with lower offers, tougher terms, or they walk.
- Monthly P&L statements for the last 24–36 months (plus year-to-date).
- Balance sheet that ties out cleanly (and a debt schedule that’s easy to follow).
- Add-backs with short explanations (one-time expenses, owner perks, unusual events).
- Customer concentration (top customers and % of revenue), plus churn/retention if you track it.
- Owner dependency list (what you personally do today that someone else must take over).
If you want a simple way to explain cost pressure (rent, wages, supplies) without sounding like you’re making excuses, you can reference macro basics like the CPI release schedule and this quick guide on inflation vs. recession vs. depression. Buyers may not “care about CPI,” but they absolutely care about margin stability and whether headwinds were temporary or structural.
Step 2: Decide what you’re selling (assets vs. the entire entity)
Many Connecticut deals are structured as an asset sale (buyer purchases assets and selected contracts) because it reduces liability risk for the buyer. Other deals are equity sales (buyer takes the entity as-is), which can be simpler in certain situations. Your CPA and attorney should guide this based on taxes, risk, licenses, contracts, and what the buyer is comfortable with.
Step 3: Get a realistic valuation and price range
Valuation is usually a mix of math and risk. Two businesses with identical revenue can sell for very different prices depending on recurring revenue, customer diversity, documented processes, and how transferable the business is without you.
If you want a simple tool to sanity-check how purchasing power changed over time (useful when you’re explaining price increases or long-term contracts), the CPI inflation calculator helps you communicate it clearly. It’s not a valuation tool, but it can help your “story” make sense.
Step 4: Build a simple deal package (clear beats fancy)
You don’t need a 60-page novel. You need a package that answers buyer questions quickly and confidently.
- Blind teaser (no identifying details, just highlights and general geography).
- Confidential information memo (shared only after an NDA).
- Financial summary with add-backs and margin story.
- Operations overview (team roles, systems, SOPs, KPIs).
- Growth opportunities that are realistic and evidence-based.
One thing that quietly wrecks deals is messy receivables or unresolved disputes that pop up during diligence. If you’re dealing with that, clean it up early. This guide can help you think it through: what business debt collection is and how to handle it.
Want serious buyers instead of tire-kickers?
If you’re already at $1M+ revenue, Earned Exits is built for that range. A free valuation call can help you understand your likely value range and what changes could increase it before you go to market.
Step 5: Market the business without blowing confidentiality
Connecticut is small. Confidentiality matters, especially in tight business communities (Fairfield County, New Haven County, and the Hartford region). A typical best practice is to market a blind teaser first, require an NDA, then share details only with qualified buyers who have funding capacity and relevant experience.
Step 6: Negotiate the LOI like it’s the real deal (because it is)
The LOI (letter of intent) sets the structure: price, cash at close, seller financing (if any), working capital expectations, timeline, transition plan, and any earn-out terms. A sloppy LOI often leads to painful renegotiations later.
If buyer financing is involved, pay attention to loan terms and red flags. This guide can help you spot issues faster: predatory lending and interest rate caps explained.
Step 7: Due diligence (annoying, but manageable if you stay organized)
Due diligence is the buyer confirming reality: taxes, bank records, contracts, leases, insurance, HR/payroll, licenses, and any legal issues. If your deal package is clean and your files are organized, diligence becomes a checklist instead of a fire drill.
Step 8: Close and transition in a way that protects your reputation
Closing is documents and wire transfers. Transition is where you protect your staff, customers, and your name. If reputation and continuity matter to you, put it in writing: transition length, training expectations, communication plan, and anything tied to employee retention.
Where to go in Connecticut for help selling your business (trusted local resources)
Here are Connecticut resources that owners actually use to get advice, confirm filings, and connect with the right professionals.
- Connecticut Small Business Development Center (CTSBDC at UConn): No-cost, confidential advising to help you prep your business for sale and tighten operations. Visit CTSBDC
- SCORE Connecticut chapters: Free mentoring and workshops that are perfect for cleaning up systems and financial basics before you sell. SCORE Western Connecticut and SCORE Eastern Connecticut
- SBA Connecticut District Office: Helpful for understanding the financing ecosystem buyers may use and finding programs in your area. Visit SBA Connecticut
- Connecticut Business Records Search (official): Verify entity status and filings using the state’s database. Connecticut Business Records Search
- myconneCT (CT Department of Revenue Services): Tax accounts and filing status often come up during diligence. Buyers love “everything current.” Visit myconneCT
- Connecticut Society of CPAs (CTCPA) “Find a CPA”: Find Connecticut CPAs, including those comfortable with transactions and buyer-ready financials. Find a Connecticut CPA
- Connecticut Bar Association: For help finding a Connecticut attorney for purchase agreements, LOIs, and closing docs. Connecticut Bar Association
Connecticut’s most populous cities and how selling can differ by market
Buyer demand and deal dynamics can shift depending on where you are and what kind of business you run. Here’s a practical lens for Connecticut’s biggest cities and nearby hubs:
- Bridgeport: Buyers tend to focus on stable cash flow and clean operations. If the business is service-heavy, staffing and retention matter a lot.
- Stamford: Strong appetite for professional services and B2B businesses with recurring revenue, clean contracts, and low owner dependency.
- New Haven: A mix of services and healthcare-adjacent businesses. Buyers often look hard at compliance, leases, and customer concentration.
- Hartford: Finance, insurance-adjacent, and established local service operators do well when processes are documented and margins are steady.
- Waterbury: Trades, logistics, and “hands-on” operational businesses can attract operator-buyers if the business runs smoothly without the owner.
- Norwalk: Boston-NYC corridor energy, so buyers often pay more for clean books, recurring revenue, and a clear growth story.
- Danbury: Great market for regional service companies. Buyers want to see repeat customers, tidy financials, and realistic add-backs.
- New Britain: Operational discipline matters. If your SOPs are solid and the team can run without you, you’ll usually get better terms.
- West Hartford: Often service-heavy. Buyers like predictable retention, clean reputation, and stable staff.
- Greenwich: Higher expectations on reporting and professionalism. Clean financial packages and low risk can command premium outcomes.
FAQ: Selling a Business in Connecticut
How long does it usually take to sell a business in Connecticut?
A realistic range is 4–12+ weeks to prep, 1–6+ months to market and negotiate, and then 60–120 days from LOI to close (especially if financing is involved). The cleaner your books and documentation, the faster and smoother it tends to go.
Do I need a broker to sell my Connecticut business?
Not always, but many owners use one because it improves confidentiality, filters buyers, and keeps momentum during negotiation and diligence. If you’re running the business day-to-day, a good broker can prevent “stall-outs.”
What documents will buyers ask for?
Expect 3 years of tax returns and financials, year-to-date statements, bank statements, AR/AP aging, customer and vendor contracts, lease documents, insurance policies, payroll summaries, and a clear debt schedule. Organized files reduce buyer fear and reduce price cuts.
What’s the most common reason deals fall apart?
Messy financials and surprise risk. That includes unclear add-backs, customer concentration issues, undocumented processes, unresolved legal or tax problems, and lease surprises discovered during diligence.
Should I tell my employees I’m selling?
Usually not at the very beginning. Most owners keep it confidential until they have a serious buyer and a clear communication plan. When you do share, a calm transition plan helps prevent fear and turnover.
Asset sale vs. equity sale: which is better in Connecticut?
It depends. Buyers often prefer asset sales to limit inherited liabilities. Sellers sometimes prefer equity sales for simplicity or tax reasons. This is a CPA + attorney question because it depends on your entity, taxes, licenses, and deal risk.
Will I need to offer seller financing?
Not always, but it’s common in many lower-middle-market deals. It can expand the buyer pool and sometimes supports a higher price, but it adds risk. If you do it, make sure the note terms and default protections are clearly written.
What is an earn-out and should I agree to one?
An earn-out ties part of your payout to future performance. It can bridge valuation gaps, but it can also create conflict if the buyer changes operations. If you accept an earn-out, keep it simple, clearly measurable, and time-limited.
How can I increase my valuation in the next 6–12 months?
Tighten reporting, document processes, reduce owner dependency, diversify customer concentration, stabilize margins, and clean up anything that could create surprises (tax issues, disputes, messy contracts, unpaid receivables). Also, make your “business story” easy to understand. If you want to brush up on CPI basics for explaining pricing and cost changes, this is a solid explainer: what CPI is and how it’s calculated.
What if the economy changes while I’m selling?
Economic shifts can affect buyer sentiment and financing terms. The best defense is having clean numbers and strong fundamentals, because high-confidence deals still close even when markets feel uncertain.
Thinking about selling in the next 6–18 months? Start here.
A free valuation can help you understand your likely range today, what buyers will focus on, and what improvements could raise your sale price before you go to market.
Friendly reminder: This article is for general educational purposes only and is not legal, tax, or financial advice. For a real sale, you’ll usually want a Connecticut CPA and a transaction attorney involved early.
