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Selling Your Business? Here’s how to Create a Successful Team of Advisors
Selling a business can be a complex and time-consuming undertaking, but you don’t have to go it alone. Building the right team of experts to partner with and guide you through the selling process can prove to be advantageous in helping you achieve the best outcome from the sale.
When getting your business ready to sell, there are numerous reasons why creating a trusted and experienced team of experts can prove to be essential. Here’s a look at the benefits of creating a successful team of advisors:
The Benefits of Having a Team:
When it comes to selling your business, partnering with a group of experts can help the process move along quickly and efficiently. These experts are also able to navigate challenging situations that can arise throughout the process such as marketing, negotiation, contract language, intellectual property, and financing among other things.
Selling your business can also take a lot of time and effort, which can take you away from the actual work of running your business. Delegating some of these tasks to experts who have gone before you can save you an immense amount of time and keep you from having to recreate the wheel.
Here’s who to include on your prospective team when it comes to selling your business:
A business broker
An attorney
A CPA/Accountant
A financial advisor
Others who have gone before you
You may not need to fill all of these positions depending on the size and scale of your business, but it’s important to consider the benefits of each of these roles.
Business Broker
Partnering with a business broker can help you with the sale of your business in numerous ways. Not only can they keep the sale process moving forward while you continue to maneuver the day to day operations of your business, but they can also help to market, present, and negotiate the sale. Specifically, a business broker can:
Determine the valuation of your business.
Create a marketing strategy for the sale of your business.
Keep your information confidential throughout the selling process.
Identify potential buyers and manage negotiations.
Manage the due diligence process through to closing.
Finalize the sale of your business.
A business broker can also use his or her network to connect you with an attorney, accountant, or other team member you might deem necessary as you work toward the sale of your business.
Attorney
More than likely, you have an attorney you have worked with at some point in the process of owning your business. However, when it comes to selling your business, it’s important to consider finding an attorney with expertise in sales and acquisitions. This may mean finding a lawyer outside of the one you have grown a relationship with over the years, but by partnering with a transaction attorney, you can save time as they already understand the landscape of mergers and acquisitions. A transaction attorney can:
Review contracts and other legal documents.
Provide legal advice on the transaction.
Resolve current, pending, or ongoing litigation.
Identify legal issues that could hinder the sale of your business.
The best way to find the right transaction attorney for you is through word of mouth. Ask retired business owners or your business broker for recommendations. Don’t forget to interview each attorney to find the right fit and to be sure he or she has your goals in mind.
Accountant
If you have a CPA you’ve worked with in the past, he or she should already be well acquainted with your business and understand the financial shape of it. Throughout the selling process, an account can:
Review and prepare financial statements needed to determine the valuation of your business.
Keep your financial statements up to date until the sale of your business.
Gather financial data requested by the buyer during the due diligence phase of negotiations.
Help you take advantage of tax-saving opportunities from the sale of your business.
If you don’t yet have an accountant that you’re working with, it’s important to find the best CPA in your area and create a partnership with them as early on in the selling process as possible.
Financial Advisor
Financial advisors can help you clarify your financial goals and determine how best to invest your sale proceeds. Additionally, a good financial advisor can help you ensure that the sale of your business play’s a positive role in your overall strategic wealth plan. Don’t wait until the sale is finalized to reach out to a financial advisor as planning ahead of time can help you reach your financial goals. Leading up to and during the sale, a financial advisor can:
Work with you to clarify your financial goals.
Help you plan for retirement.
Advise you on how to allocate your funds after the sale.
Again, it’s important to interview prospective advisors to find the right fit for you.
Others who have gone before you
When it comes to selling your business, it’s important to reach out to others who have gone before you. Previous business owners who have experienced selling their businesses may have a wealth of knowledge to offer you on the selling process. Not only will they be able to provide you with a few tips for selling your business, but they may also be able to direct you to quality attorneys, accountants, etc.
Key questions to ask:
What were some of the key challenges?
Is there anything they would have done differently to help prepare their business for sale?
What was their role in the sales process?
What was their role in the transition process?
In Conclusion.
Selling a business is a complex process. Having a team of experts with the right experience to help you with the sale of your business can prove to be invaluable. Looking to create the right team for you? Contact us today for more information or to answer any questions.