Experienced Advisors are of Fundamental Importance to the Successful Sale of Your Company!

You are probably considering the sale of your business or you wouldn't be reading this. You have probably realized that this critical financial transaction is unique in that it is outside the scope of your normal experience. Most likely, you have not sold a business before. Similarly, it is probably outside the experience of your normal set of advisors.

I am sure if you needed surgery on your heart or knee, or any major part of your body for that matter, that you would want to have a surgeon that had performed the same surgery at least a hundred times. The same principal applies in your transaction. The more experience you advisor has, the better change you have for closing a sale that meets your objectives.

EXIT PLANNING TEAM

This team typically consists of your attorney (make sure this transactional attorney has done many M&A deals), your CPA (same criteria for the CPA applies), a financial/insurance advisor and your Business Intermediary or M&A specialist.

Your CPA should have been advising you about your choice of entity, (C Corp, S Corp or some other pass-through entity) and how it will affect you during a sale. Of course they also should be keeping your financials clean. Your business attorney should be advising you on how to keep your employees motivated and focused during a sale. Your business intermediary should be working with you to create or enhance your company's Value Drivers. There value drivers will definitely increase the price of your business. Your advisors can help you concentrate and focus on the value drivers that are most critical to driving up business value in the shortest amount of time.

Advisors, such as the attorney and CPA will complete financial pre-sale due diligence to make certain the business is ready to be sold. You do not want to wait until the sale has been struck and then the buyer discovers problems.

The most important reason that advisors are crucial to your success is that they increase business value, find the right buyer and induce the buyer to pay top dollar for your company.

My next webinar is going to go into more detail on one of the major Value Drivers: "how a stable, motivated management team and high performing workforce" is accomplished. If you're interested in joining our webinar mailing list, please email me at jyoung@sunbeltbayarea.net!



For more information on Exit Planning, Valuations, M&A, and Business Brokerage, please call or email Joan Young, President of Sunbelt Business Brokers, Greater Bay Area at 408-436-1900 or jyoung@sunbeltbayarea.net.