The professionals you need to sell your business and how to find them
There are many things to consider when selling a business and working closely with your financial advisor can help ensure you get through the sales process efficiently and effectively. Here we will assume you have your business plan in place and you’re ready to take the next steps to sell your business.
Do you need an attorney to sell a business? A CPA? Do you want to include an estate planner in the business sale discussion? There are many professionals who each have a critical role to play before, during, and after a sale. Assembling the right team who will always work on your behalf and in your best interest is daunting.
At PNWA we help you, the seller, find the right people with the right background and experience to ensure a smooth transaction that will help you get to your financial goals. The team you need depends a bit on the size of your business, but generally, an estate and tax attorney, a CPA, and an investment banker are the professionals that will best serve your interests. The priority in choosing is to find someone who specializes in your industry. Whether manufacturing, retail, or a favorite in the northwest, a winery, you want a team who knows your business inside out. That’s where PNWA shines. We have been in business long enough to have many contacts and we can help you find the best ones for your team.
Finding the Right Team To Help Sell Your Business
PNWA will identify two or three firms and professionals at those firms to contact. We’ll conduct an initial interview to ask among many questions, the basics-size of the firm, how many deals they’ve done, and their specialties. Our list of pros and cons of each selection will be presented to our client and then we’ll schedule time for the client to conduct an interview.
We don’t expect sellers to know exactly what information to ask. While there are useful resources, such as Entrepreneur’s list of questions that a business owner should ask a third-party professional, it doesn’t clarify what to look for in the answers. Since PNWA will already be familiar with both you and the professionals you are interviewing, we’ll be able to guide the conversation and will actively participate with any critical items you or the professional being interviewed may miss.
During the interviews, massive amounts of information are transferred between parties. The owner will gain an understanding of the current state of his industry and how others perceive it, while the professional will learn more about this particular business. The information swap is critical because whoever we interview, whether we choose them or not, may have the perfect buyer.
About 90% of the information gathered from each business will be similar but that critical 10% is what will differentiate the firms and guide the seller’s decision on which to choose. It often comes down to overall familiarity with the business or even just personality. No matter the case, with interviews done you will be able to quickly make a choice and continue the process. In some instances, a seller already has advisors in place and PNWA will assist in filling in the gaps.
Your Business Is Up For Sale-Now What?
With the team completed, the investment banker will take the lead and drive the process. At PNWA, we request to be copied on all correspondence so we can track and monitor the progress and be the point of contact for you. We’ll be in the mix making sure all t’s are crossed and things are moving in a timely manner. We represent our client, the seller, so all activity must be to their benefit, allowing them to accomplish their financial goals.
The investment banker will solicit buyers by creating a deck of business prospects, using the information he’s gathered from the interview with you and from PNWA. As bids come in, the entire professional team will review them and opine on the best and strongest transaction, whether the highest value or the overall structure of the deal. Additionally, PNWA will utilize the planning process to evaluate the different deal structures to make certain it satisfies the business owner’s objectives.
Once a buyer is identified, the banker will remain in the negotiations, while a corporate or mergers and acquisitions attorney will write the contract. In the background, PNWA will be working with the owner and the estate and tax planner to finalize a tax and estate plan. We believe that before the sale is final, it is necessary to create a tax and estate plan that defines how the proceeds of the sale will be implemented into the client’s financial investment strategy in the most tax-effective manner. Our goal is that once the forms are signed and the money has changed hands, a plan is in place and our client can simply walk away and enjoy the next phase of his life.
PNWA has helped numerous clients with varied needs and wants (https://pnwadvisory.com/business-owners/case-studies) go through the process of selling a business and come out at the end of the sale exactly where they wanted to be. Contact us to see how we can assist you. https://pnwadvisory.com/contact-us