Selling a business involves far more than finding someone willing to buy it. Financial information needs to be prepared, buyers need to be managed, commercial terms need to be negotiated and legal documents need to accurately reflect what has been agreed. For most business owners, it is not something they do regularly, which is why having the right advisers around the transaction matters.
The three advisers most commonly involved are the business broker, accountant and solicitor. Each has a different role, and a smoother sale usually comes from allowing each adviser to focus on the area they understand best.
Your accountant is central to the financial side of the transaction. They can help ensure the accounts are accurate, explain historical performance, identify legitimate adjustments to earnings and advise on tax and financial considerations. Their involvement can become particularly important during due diligence when the buyer or their accountant starts asking detailed questions about the numbers.
Your solicitor deals with the legal side. This may include reviewing or preparing the contract, advising on warranties and obligations, dealing with leases or restraints and making sure you understand the legal effect of what you are agreeing to. A commercial term that sounds straightforward during negotiations can have much broader consequences once it appears in a contract, so legal advice should be obtained before commitments are made.
The business broker has a different role again. The broker manages the sale process and the buyer market. This can include positioning the business, preparing sale information, identifying potential buyers, qualifying enquiries, managing confidentiality, coordinating information, negotiating commercial terms and helping maintain momentum as the transaction progresses.
More complex sales may involve additional specialists, but more advisers do not automatically make a transaction better. What matters is that responsibilities are clear and the advisers communicate with one another. The owner also has an important role throughout the process: continuing to run the business. Buyers are still watching performance while the sale is underway, and allowing the business to decline because all attention has shifted to the transaction can create an entirely new problem.
If you want to know more feel free to reach out. Contact us for personalised assistance and expert guidance.
Regards,
Tony Arena