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Don’t Sell Your Business Without These 4 Core Advisors – One Saved My Client $1.8 Million
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Selling a business is one of the most notable financial transactions an owner will undertake. Yet, many entrepreneurs attempt this complex process without assembling a robust team of advisors, potentially leaving substantial money on the table. A recent analysis highlights the critical role these professionals play in maximizing sale price and ensuring a smooth transition.
The High Stakes of Business Sales
The market for business sales is competitive. Owners need expert guidance to navigate the intricacies of valuation, negotiation, and due diligence. as Jessica Fialkovich notes, the right team of advisors can make or break your business sale
.
Did You Know?
Approximately 70-80% of businesses initially listed for sale do not successfully close,often due to inadequate readiness or poor advisory support.
Why Advisors Matter: A Client Case Study
Fialkovich recounts a recent experiance where a client was on the verge of accepting an offer that undervalued their business by $1.8 million. We were able to push back on that valuation and ultimately get them a much better deal
, she explains. This outcome was directly attributable to the expertise of the client’s advisory team.
The Four Core Advisors You Need
1. M&A Advisor
A Mergers and Acquisitions (M&A) advisor specializes in preparing a business for sale, identifying potential buyers, and managing the negotiation process. They understand market dynamics and can position your company for optimal value.
2. Legal Counsel
Experienced legal counsel is essential for reviewing contracts, ensuring compliance, and protecting your interests throughout the sale. They handle the complex legal aspects of the transaction, minimizing risk.
3. CPA/Tax Advisor
A Certified Public Accountant (CPA) with expertise in business sales can advise on tax implications,structuring the deal for tax efficiency,and minimizing your tax liability. Proper tax planning can significantly impact your net proceeds.
4. Financial Advisor
A financial advisor helps you plan for life after the sale, managing the proceeds and ensuring your long-term financial security. They can assist with investment strategies and wealth management.
Pro Tip: Start building your advisory team well in advance of your planned sale date – ideally, 12-18 months beforehand.
key Timeline & Decision Points
| Phase | Timeline | Key actions |
|---|---|---|
| Preparation | 12-18 Months Prior | Assemble Advisory Team |
| Valuation | 9-12 Months Prior | Business Valuation |
| Marketing | 6-9 Months Prior | Identify Potential Buyers |
| Negotiation | 3-6 Months Prior | Offer Review & Negotiation |
| Closing | 1-3 Months Prior | Due Diligence & Finalization |
The Cost of Going It Alone
While hiring advisors involves costs, the potential savings far outweigh the expense. Failing to secure expert guidance can lead to a lower sale price, unfavorable terms, and increased legal or tax liabilities. The $1.8 million saved for fialkovich’s client demonstrates the tangible value of a skilled advisory team.
-Jessica Fialkovich, Business Advisor
Successfully navigating a business sale requires a strategic approach and a team of experienced professionals. Don’t underestimate the power of expert advice – it could be the difference between a profitable exit and a missed chance.
What are your biggest concerns about selling your business? Share your thoughts in the comments below!
Woudl you consider hiring an M&A advisor even for a smaller business sale?
