The Buyer Dream Team
Buying a business is a significant financial event for a buyer, and most certainly not the time to fly solo. You want a team of advisers to guide you through the Business Buying Process as well as someone who can coordinate with your team and the Seller’s team. Typically, you team should consist of a Business Intermediary/Broker, legal advisers, financial advisers, and industry experts.
You can think of a Business Broker/Intermediary as a Business Buying Process Coach. The Intermediary is the central figure throughout the process, working through issues that arise, and keeping all the players focused on the end goal. This individual not only works with your team but also the seller’s team, insuring a successful sale and transition. If you have any questions about professionals you should include on your Dream Team based on your unique situation, your Business Broker/Intermediary can give you some guidance.
Legal advice comes from an attorney; however, it is highly recommended that you seek out a Transaction attorney and/or Real Estate attorney. Transaction attorneys are most typically in Business Sales Transactions. This means that they are highly skilled in working through the financial, tax , planning, and procedural matters associated with buying a business. A real estate attorney is specialized in negotiation of real estate contracts and leases. If your business transaction involves real estate, it is highly encouraged that you have a real estate attorney on your team.
Depending on your situation, you may also consider seeking additional legal counsel, such as an immigration attorney, employment attorney, licensing attorney, or industry specialized attorney.
When you own a business, there is simply no person more valuable than a great accountant or CPA. As you progress through the Buying Process, it is important to have an expert look at the financial data during the due diligence process. In addition to a regular CPA or accountant, you should also utilize the services of a Transaction CPA firm. Transaction CPAs are experts at negotiating deal structure and are knowledgeable in ways to structure transactions that are unfamiliar to typical CPAs. Another financial adviser typically involved in a business sale are bankers because buyers may or may not have all the cash needed to purchase a business outright.
If you are purchasing a business in an industry that you are not familiar with, utilizing the services of an industry expert could be very useful. Your industry expert could be someone you know who works in the industry, owns a business in the industry, or is a professional industry consultant.