Why Should I Use An Experienced Team Selling My Business?

By nature, business owners are entrepreneurial and frequently take the do-it-yourself method in everything they do – even selling their business. While this is a great way to ensure your business’ success, using it to sell your business, is perhaps not the best idea.

The process of selling a company is time-consuming; from deciding the value and price of the business to finding the right buyer and closing the deal. A business broker – working with your other personal advisors – will take care of all the complicated logistics so you can continue to run your business.

But there are some important things for you to be watching and expecting.

First, your broker should evaluate your business and provide feedback on potential red flags with your finances, the building, or even vacancies for employees.  Again, when selling your company, deciding the right valuation is essential, and your broker will examine all the variables to find the correct value.  

You will need an accountant to help you understand your tax consequences and possibly help you clean up your books. Accountants and financial consultants can play an invaluable role in helping you structure your deal.

You will also need an attorney to help with legal matters. Transactional lawyers (also called corporate lawyers) help with the due diligence (organizing and managing it if you are the seller) and preparing and negotiating the asset purchase agreement or stock purchase agreement, and all the ancillary documents, such as bills of sale, promissory notes, secretary and officer certificates and resolutions and meeting minutes of directors, shareholders, members, and managers.

The key is to choose advisors wisely and in the overall context of the size and complexity of the transaction. If you haven’t been through this process before, it’s a huge help to have a trusted advisor who has and has broad perspective on ‘what’s going on and who does what.’

When it comes to engaging professionals, perform your own due diligence. Ask about experience and, if there is any doubt, get references. Great professionals will make the process much easier and protect you along the way.

Get in touch with California Business Advisors today.
Aaron Thom, California Business Advisors, Inc.