I’m selling my Business- I can do this on my own right? Well, you can do anything you put your mind to, but that doesn’t mean you SHOULD. When it comes to your exit strategy, you can plan every strategic piece. Your files could be impeccable, your finances, golden, and everything just perfectly lined up. The one thing we all, as business owners, forget to calculate is the emotional aspect. If you started this company from the ground up or invested any blood, sweat, tears, and your social life to get it running, you WILL have a hard time letting go. You’ll have an even harder time staying on after the deal is done, but that is another topic.
Here are the 3 professionals you need in your corner when it comes to selling a company on any level;
Person 1: Attorney
The very first person you need when starting your exit is a GOOD attorney with ridiculous amounts of experience. When searching for professionals I like to ask my colleagues. I suggest reaching out to others who have gone through this. If that does not work, relying on the trusty Google search is your most reliable option. You want to find someone who has handled at least 10 M&As (mergers and acquisitions) or business purchases. Contract law is a must. A good lawyer is worth EVERY cent you pay and you can typically get their fees for a flat rate and negotiate that into the purchase agreement. So don’t let cost stop you.
Person 2: Financial Advisor/CPA
The second person you will need is a CPA/financial advisor. If you are about to come into a lump sum of money, you need to know how to properly handle that, pay off debts, and reinvest to avoid incurring high taxes. If you do not have this knowledge or experience, then this person is a must. As an entrepreneur, you most likely have spent your business life trying to make payroll and manage cash flow, so this new financial freedom can really hurt you if not handled properly. Again, this is a cost that you can negotiate into the purchase agreement. It is usually always a flat fee.
Person 3: Exit Planning Advisor
The third person you need is where I come in. You need someone on your team that can keep you grounded. A CEPA (Certified Exit Planning Advisor) is going to look at the big picture and be your right hand through the entire process. With their extensive experience, they possess a comprehensive understanding of the entire process, guiding you seamlessly from the beginning to the end. Their expertise allows them to offer valuable insights on all due diligence requests, aiding in organizing the process and ensuring alignment with your goals.
Additionally, they actively participate in calls, preventing oversight of crucial details. Their assistance extends to negotiation support as well. There is so much more involved than just a purchase price. There are the details of your team, clients, and you. These are things you assume the purchaser has the best interest for, but may not. Typically, you can incorporate these fees into your purchase agreement.
Typically you, your attorney, and your exit advisor are going to work very closely together. Attorneys are always looking at the details and making sure there are no liability or long-term issues. Your exit advisor is making sure that these legal details make sense and are in line with your industry, and your goals. It’s crucial that your exit advisor possesses extensive experience in exits and maintains a non-biased perspective at all times. You need this person to be on your side but also be able to give it to you straight without worrying about upsetting you.
Navigating this process might be challenging, but having a team of these experts in your corner ensures a successful outcome in the end!
