How Much Can You Expect to Walk Away With When Selling Your Business?
When selling a business, the final sale price doesn’t tell the whole story. What really matters is how much you’ll walk away with after fees, debt, taxes, and other costs are paid. This number is what determines your financial future after the sale — whether you're retiring, investing in a new venture, or just stepping back.
Why Valuation and Planning Matter
Before you start thinking about your exit, it’s important to get a clear, accurate valuation of your business. This sets the foundation for realistic planning and negotiations. Without knowing what your business is worth, you’re guessing, and that can result in missed opportunities or disappointing outcomes.
At Piscani Consulting Services, we provide business valuations to help you understand your company's current market value. This service gives you clarity and confidence as you explore what a potential sale could look like. If you're considering selling in the next few years, it’s a good idea to reach out and get that valuation early. It's often the first step in building a successful exit plan.
The Real Costs of Selling a Business
Several costs can reduce the amount of money you take home from the sale. These should be accounted for in your planning process:
Broker Fees: Typically 5–10% of the sale price.
Legal Fees: For contract review, negotiations, and sale documentation.
Accountant Fees: Tax planning, due diligence support, and financial statements.
Outstanding Debt: Loans, credit lines, and other business obligations.
Other Fees: May include software subscriptions, final payroll, advisory fees, or last-minute administrative costs.
Taxes: Depending on how the sale is structured (asset vs. stock), capital gains and other taxes can be significant.
Example: Sale of a $3.5M Business
Let’s walk through a simplified example showing how these costs affect the final cash available after a business is sold.
This scenario also assumes no seller financing, which may further reduce the initial walk-away cash value.
This example shows how the sale price translates into actual cash after obligations are handled. While the business sells for $3.5 million, fees, debt, and other items consume approximately 37% of the proceeds, and the seller walks away with just under $2.2 million. These fees will vary depending on the size and complexity of the transaction.
How to Use This Information in Your Exit Planning
Estimate What You’ll Walk Away With
If you already have a sale price in mind, working through the associated costs — broker fees, taxes, debt, and more — gives you a realistic picture of how much cash you can actually expect to take home. This helps you plan for what comes next, whether that’s retiring, starting something new, or investing in other opportunities.
Reverse Engineer Your Sale Price
If you have a specific goal for how much you need to walk away with — say $1 million — you can work backward to determine what your business needs to sell for in order to meet that target after all deductions. Many business owners underestimate how much they need to sell for because they overlook the cumulative impact of taxes, fees, and debt payoff.
This reverse-engineering approach is a key part of exit planning, and it’s something we help business owners do every day at Piscani Consulting Services. By identifying your walk-away target early, we can help you shape your business strategy around achieving that number — whether that means improving profitability, reducing risk, or growing valuation before listing the business for sale.
Maximize Your Business Sale With Smart Planning
Selling a business is a major financial decision, and understanding what you’ll actually walk away with is just as important as knowing what your business can sell for. By factoring in fees and obligations, and by getting a professional valuation, you’ll be better equipped to plan a smart, well-timed exit that meets your financial goals.
At Piscani Consulting Services, we offer both valuation and exit planning services to help business owners take the guesswork out of selling. Whether you're ready to sell now or just starting to plan for the future, we're here to help you make confident, informed decisions every step of the way.
About the Author
Nick Piscani is the owner of Piscani Consulting Services. He helps business owners increase company value and plan successful exits. To learn what your business could be worth and how to increase that number, schedule a discussion today or email Nick at nick.piscani@piscaniconsultingservices.com.
