When it comes to selling a business, it’s not a question of if you need a team, it’s a matter of who you’ll pick to advise you, and when you get them involved. Transaction professionals—including attorneys, accountants and business brokers—each play a critical role in the business transfer process. Experienced advisors understand they are engaged to provide counsel; to inform you of the issues and risks, but not to make decisions on your behalf.
Who. For those that think an attorney is an attorney, an accountant is an accountant and a business broker is a business broker, I make the analogy to the medical profession. You would not see your general physician for that knee replacement. If you are buying or selling a business, you need advisors who are highly experienced with structuring merger and acquisition transactions, and ideally ones who are familiar with the type and size of companies involved.
Who Part Two: Fit & Function. Not only do you want advisors who are a good fit for you, you need them to “play nice in the sandbox” – to work collaboratively with each other, and effectively with their opposing counterparts. Scorched-earth tactics & brinksmanship doesn’t get deals done. You want problem-solvers, not problem-makers.
When. As critical to who you select, is when your chosen advisors are brought into the process. If you don’t have the “right” answers to the questions they pose, you want to have enough runway to get your house in order before you market the company for sale. To effectively inform your decision-making, they need information, early and often. The best advisors ask the right questions – the questions they know the potential acquirers will ask. Having clear, concise answers to these questions well in advance of launching your process can make the difference between getting a deal done, or having it crater… with your time, money and emotional capital smoldering in the hole.