The Importance of Business Advisor When Selling a Business

August 30, 2021

Many entrepreneurs are aware of the fact that they would benefit from obtaining expert advice when it comes to properly making a deal. They have little idea what happens in this sort of transaction, yet, so many of them are unwilling to pay to speak to a professional.

However, as a start-up business owner, speaking to business transaction advisors when organizing and structuring deals can provide a range of benefits that can help to maximize your sale price, and minimize your tax burden. Here are just a few of the many advantages of looking for ‘business transaction advisors near me.’

Avoid the Proprietary Deal

A proprietary deal involves a business being sold directly to one party without being placed on the market for others to put in their offers. This is a common situation, but it can often result in the owner getting a lower price for their business due to the lack of competition between bidders. When just one party is involved in the transaction, they are less likely to reduce their price during negotiations.

Properly Educate Buyers

Transaction advisory services can provide valuable information to potential buyers. Often, buyers are required to have a decent knowledge of the business and its financial attributes. Understand all of this can be complex and time-consuming for an owner trying to run their business. However, advisors can summarize all necessary details and convey them to potential buyers in an easy-to-understand way. This is also essential when preparing for the due diligence process.

Negotiate Transaction Specifics

Selling a business can get complicated. Several variables are associated with this large transaction, and very few entrepreneurs are aware of the finer details. When a buyer presents a complex spreadsheet of their finances and cash flow, the business owners may be left feeling uncertain about whether or not to go forward with the proposed offer. Business transaction advisors can advise business owners and entrepreneurs of specific transaction details, reducing potential financial risks and how to optimize the business post-transaction.

Overcoming Disagreement

When it comes to selling a business, it can be difficult to agree on the price and terms of the transaction. Naturally, the buyer wants to pay as little as possible with the highest level of protection, and the seller wants to obtain the largest price possible with fewer assurances. Making a fair deal that benefits both parties can, therefore, be a fine line. It can be said, the best deal is where both parties are not entirely happy with the outcome! Confiding in transaction advisory services can ensure any disagreements or issues between the buyer and the seller are resolved so that the transaction can move forward.

Preparation of Materials

There is often large volumes of information required from buyers before the sale of a business can be completed. The seller must begin to gather important information as efficiently as possible. When the non-disclosure agreement has been signed, the stored data is then made available for the potential buyer to view. This process can be made simple using an advisor.