It Takes a Village to Traverse the Transaction Process of Buying or Selling a Business
Before setting out on a “transaction journey”, we would advise that you give serious and effort into who are the people that are going to assist you on this journey. Whether you are selling or buying a business, there are certain specialized skills that you are going to need and likely do not possess.
So…who should be on your “DEAL TEAM”?
- Business transaction specialist: I know this may seem a bit self-serving, but this is a good place to start. Whether they be an Intermediary, a Broker, an Investment Banker, or a Mergers & Acquisitions professional, they should have a fiduciary relationship with you. This means that they are ethically bound to put you their clients’ interests first, before their own. Additionally, they can help and/or make recommendations for the other members of the team. This individual should be professional, experienced and highly regarded in their field
- Transaction Accountant: Usually a CPA, that has numerous transactions under their Ideally on both the buy & sell side.
- Transaction Attorney: Not your personal attorney or a friend who does some “business” work. Here you want an experienced business attorney or firm that has done numerous business transactions and “business” is a substantial part of their practice.
- Tax Specialist: This may be the CPA or the attorney, but if either of those individuals do not have substantial tax experience, seek out someone who does. The tax implications of a transaction can be significant and a specialist can more than pay for themselves by helping to mitigate the present and future tax consequences.
- Commercial Lender:Particularly if you are pursuing an acquisition strategy. A good lender in your corner is essential.
- Financial Planner: Especially if the goal of the transaction is to provide enough resources for retirement or to help fund “the next chapter”.