Sell Your Business in California

Team Singh at HomeSmart ICARE Realty / Applied Commercial helps owners sell their businesses confidentially in 27 counties across Northern California, from the Bay Area and Sacramento Valley to the Sierra foothills, plus Stanislaus, San Joaquin, and Fresno. Led by Ujjal Deep "Breeze" Singh (DRE 01981870) and Mandheraj "Raj" Singh (DRE 01998314), we price SBA-financed deals on what a lender will actually fund (debt-service coverage, or DSCR), market the business anonymously, and release details only to buyers who sign an NDA. We sell gas stations, liquor stores, convenience stores, motels, restaurants, and other owner-operated businesses, with or without the real estate.

Start with a private conversation, not a listing. We meet you (at the office, at your business after hours, or by phone) and look at your numbers together. When you're ready, we market the business without its name or address on sites like BizBuySell and BizBen. A buyer who wants more has to sign a non-disclosure agreement (NDA) first. Only then do they receive the Offering Memorandum (OM): the financial summary, lease or property details, and photos. Your employees, customers, and suppliers don't hear about it from us.

For most deals we work on, the buyer uses an SBA loan, so the price that matters is the one a lender will finance. That's why we price on debt-service coverage (DSCR) rather than a rule-of-thumb multiple of seller's discretionary earnings (SDE).

How it works:

1. Recast the cash flow. We start from your tax returns and P&Ls, add back one-time and personal expenses, and subtract a fair salary for the person who will run the business. What's left is the cash available to pay a loan.

2. Apply the lender's coverage test. SBA lenders typically want that cash flow to cover the annual loan payments by at least 1.25 times (a 1.25 DSCR). Cash flow ÷ 1.25 = the most the business can pay in debt each year.

3. Turn the payment into a loan amount at current SBA rates and terms. Business-only loans usually amortize over 10 years; loans that include real estate can run up to 25 years.

4. Add the buyer's down payment (typically at least 10% on an SBA purchase). Loan + down payment = a price a real buyer can close on.

Illustration only, not a quote: a business with $300,000 a year of cash flow available for debt service, at a 1.25 DSCR, can carry about $240,000 a year in payments. At a hypothetical 10.5% rate over 10 years, that supports a loan of roughly $1.48 million, or a price around $1.65 million with 10% down. If the sale includes the building and the loan runs 25 years, the same cash flow supports far more. Rates change, and the buyer's lender sets the final terms.

Pricing this way avoids the most common failure in small-business sales: an accepted offer that falls apart when the appraisal or the loan doesn't support the price.

Every sale is different, but the work runs in four stages:

1. Preparation: gathering financials, the lease, licenses, and building the OM. This usually takes 2 to 4 weeks.

2. Marketing and buyer screening: anonymous listing, NDAs, OM review, proof of funds or lender pre-qualification, and after-hours walkthroughs. This usually takes 2 to 3 months before a buyer opens escrow, depending mostly on pricing.

3. Offer and due diligence: the buyer reviews books, lease, equipment, and permits.

4. Escrow and closing: SBA underwriting, landlord lease assignment, and license transfers. An ABC liquor license transfer or a fuel-site environmental review often sets the closing date. An SBA-financed business escrow usually takes 60 to 90 days.

The fastest closings come from sellers who have clean, organized records before the business goes on the market.

Do you keep the sale confidential?

Yes. Confidentiality is built into every step:

- The public listing never shows your business name or address.

- Every buyer signs an NDA (by DocuSign) before receiving the OM.

- We screen buyers for proof of funds or lender pre-qualification before any tour.

- Tours happen after hours or by appointment, never in front of staff or customers.

- We don't list or share your business without your written approval.

Yes. Most of our business buyers use SBA financing. An SBA 7(a) loan (up to $5 million) lets a buyer purchase with a smaller down payment, but the lender reviews the business's tax returns closely. That's why we help you organize what lenders ask for (2–3 years of tax returns, year-to-date P&L, the lease, and equipment list) before you go to market.

Can I sell the business and keep the building, or sell both?

Yes. You can sell the business and the property together, sell only the business and become the buyer's landlord with a new lease, or sell the property separately. Each option affects price, financing, and taxes differently, so we walk through them with you and your CPA. See also Commercial Real Estate (/commercial-real-estate).

What does it cost to talk to you?

Nothing. The first conversation and a confidential opinion of value are free, with no obligation to list.

How we work

We'd rather earn your trust than rush a listing agreement. That means listening first, giving you honest numbers even when they aren't what you hoped, and staying in touch long before and after a sale. Many owners talk with us a year or more before they're ready to sell, and that's how we like it.

Who you'll work with

- Ujjal Deep "Breeze" Singh, Senior Vice President and Co-Team Leader, DRE 01981870. 2025 President and now Immediate Past President of the Sacramento Association of REALTORS®; C.A.R. Director. Designations: ABR, PSA, CIPS, C2EX, RENE, AHWD.

- Mandheraj "Raj" Singh, Co-Team Lead, DRE 01998314, member of the Sacramento Association of REALTORS® Board of Directors.

- Service in English, Hindi, and Punjabi.

Let's start with a private conversation about what your business is worth and what a buyer's lender will see.

Call or text Breeze at 916-995-9754 or email Breeze@theteamsingh.com for a free, confidential conversation. No obligation to list.