Remote Regulatory Research Firm Sold for $1.05M, LOI in 16 Days

About the Business

• Industry: Business Services – B2B Regulatory Research

• Location: Remote

• Size: $750K–$1M in annual revenue, about 20 independent contractors

• Sale price: $1,050,000 (asking price: $1,495,000)

• Listing to signed LOI: 16 days

• Signed LOI to close: 120 days

The Challenge: Handing Off a Business He Had Tripled

The owner had run the firm for years and more than tripled its sales and profits. He was ready for another line of work and wanted a buyer who could keep growing it.

16 Days to a Signed LOI: How Baton Created Competition Fast

What happened at every stage

1. Valuation: Baton reconciled three years of financials before launch and set the asking price at $1,495,000.

2. Buyer Outreach: Baton marketed the listing across its own marketplace and partner sites. In its first 23 days, 58 buyers opened the data room and 10 requested introductions.

3. Offer Selection and Negotiation Support: An investor group submitted a $1.0M LOI, and four days later an acquisition company came in at $1.3M. The owner signed the stronger offer 16 days after launch.

4. Diligence and Closing Support: The buyer's quality-of-earnings review came back clean, and terms were renegotiated during diligence to $1.05M with a larger seller note. Baton helped keep the attorneys and escrow agent moving through several date changes to close 120 days after the LOI.

The Results

The buyer is an acquisition holding company financed with an SBA loan, equity and a seller note. Through Baton's process, the business:

• Sold for $1,050,000 in an SBA-financed deal

• Received 2 LOIs within 16 days of going live

• Closed with $650,000 in cash at closing (an SBA 7(a) loan plus buyer equity) and a $400,000 seller note

What's next for the owner?

The owner is advising the buyer through a transition of at least six months before moving on to his next line of work.

Advice and Lessons for Future Sellers

1. Get your books in order before you list. Reconciled financials helped the buyer's quality-of-earnings review come back clean.

2. Competition moves fast. Two LOIs within 16 days of launch gave the owner a choice of buyers.

3. Expect terms to move in diligence. A seller note can bridge the gap when a buyer's view of risk changes.