What Troy buyers usually look at
| Office lease | Years left, renewal options, and whether the landlord must approve an assignment to a new owner. |
|---|---|
| Client contracts | Signed agreements, renewal dates and any terms that let a client leave if ownership changes. |
| Professional staff | Licenses, certifications and noncompete or nonsolicit agreements already signed by key people. |
| Recurring revenue | Retainers, service plans and monthly billing that keep coming without a new sale each time. |
A Different Kind of Company
Many Troy companies sell knowledge, not parts. Engineering firms, staffing agencies, IT providers, accounting practices and agencies all depend on people and client relationships more than equipment.
That changes what buyers check. They want proof that clients are tied to the firm, not just to you, and that key staff will stay through the sale.
Recurring Revenue Earns a Premium
Buyers pay more for revenue that repeats. Monthly service plans, retainers and multi year agreements make a firm easier to value and easier to finance.
Project work can sell well too, but buyers look harder at the pipeline and at how many clients came back for a second or third job.
Leases in Office Buildings
Office leases in Troy often run several years and require landlord consent to assign. Read yours early. A buyer and its lender want the space secured for long enough to pay off the purchase, or a clear plan to move.
Keeping the Team
When people are the product, a buyer may ask key employees to sign new agreements before closing. That takes care. Telling staff too early can backfire, since deals slip and buyers walk.
Your broker will help you decide who needs to know, and when.
Agreements that stop departing staff from taking clients matter here too. Buyers check whether your key people already signed them, and whether they would hold up.
Pricing and Paperwork
Smaller firms sell on owner cash flow; larger ones with managers sell on EBITDA. Buyers will check the numbers line by line, as our due diligence page explains.
Troy companies follow the same Michigan filings as everyone else, including the tax clearance and escrow that come with closing. See the Form 5156 guide.
If your firm is an S corporation or partnership, read about the flow through entity tax in the sale year too.
Want a sense of your firm's value? Send the short form or call (313) 555-0152.