Building a Winning Team
As a Business Owner, you are a problem solver, a negotiator, and an expert on your business. Therefore, it would be reasonable to assume that you would be more than capable of handling the sell of your business. After all it’s just like selling a house right?
No Way! Selling your business is the exact opposite of the time to fly solo!
Selling your business is a financially significant, and complicated event. It is extremely important that a Business Owner has a team of professionals that can assist you through the process. Your team should include the business intermediary/broker, legal adviser and financial advisers.
A great Business Intermediary or Business Broker is your right hand throughout the business selling process. Essentially, the Intermediary’s/Broker’s job is the leader of your Selling Process, keeping all parties on track towards a quick and successful transaction. He/She will do this by coordinating with your team to work out any issues that may arise. Additionally, your Intermediary/Broker will coordinate with the Buyer’s team. Having a great Business Intermediary/Broker allows you to devote your time to your business, making sure that it looks it’s best throughout the Selling Process.
Building a successful team requires a legal professional. Your legal advice should becoming from an attorney, specifically a transaction attorney or a real estate attorney. While both transaction and real estate attorneys are most often involved in Business Sales transactions, their focus is slightly different. Transaction attorneys specialize in financial, tax planning, and procedural matters associated with buying a business and are not typically used in everyday business matters. Real estate attorneys focus on the negotiation real estate contracts, leases, and the like. Real estate attorneys are very useful in avoiding tricky pitfalls that can come up during the sale or transfer of real estate. If you are considering selling your real estate along with your business, you should highly consider consulting with a real estate attorney.
In addition to a transaction attorney and real estate attorney, your transaction may also require additional legal council. Other attorneys that could be included during your transaction are: employment attorney, immigration attorney, licensing attorney or an industry specialized attorney.
CPAs and Accountants
As many Business Owners know, there is just no replacing a great CPA or Accountant. This rule of thumb also applies to the Business Selling Process. If you already have an accountant, you should use their expertise to assist you through your financial housekeeping. In order to get the highest asking price for your business, you need to maintain the most accurate books, records, and financials possible.
Your Business Broker/Intermediary is likely to recommend utilizing the services of a Transaction CPA firm. This type firm specialize in all financial and tax matters associated with Buying and Selling a Business. Additionally, a transaction CPA has the skills to structure a purchase agreement that balances all interested parties and maximize the after-tax cash, allowing you to capitalize on your years of hard work.
Other Advisers to Consider
Depending on your situation, you may want to consult:
- investment advisers
- wealth managers
- insurance advisers
- Business Bankers
Because each transaction is different, ask your Business Broker/Intermediary about recommended professionals and advisers.