The latest news and articles from Financial Poise, plus a new free webinar every week.
Building the Dream Team for a Transaction
Just as you need the right team to build and operate your business, you need the right team to help you sell, if and when the time comes. Some of the people you need are likely the same ones you’ve worked alongside for years. But you most likely have to reach outside your organization to tap the experience and expertise needed to exit your business.
The transaction may not even be an actual “sale.” That is, the legal structure of the transaction may be a merger, for example, which is decidedly not a sale. While the vast majority of transactions that transfer ownership of a business are, indeed, sales, there can be powerful reasons to structure the transaction as something else.
Assuming the transaction (or deal, if you prefer) is a sale, what is it a sale of? You may say, “the business, stupid, don’t you people at Financial Poise read what they wrote?” But you’d be missing the point if you said that (and you’d be being unnecessarily rude). To say “I am selling my business” actually begs the question of what is being sold. That is, is the buyer to buy the equity (i.e., stock/shares of a corporation or membership units of a limited liability company or partnership units of a partnership) or the assets of the business itself. There are important reasons that drive this decision because there are important differences between an owner(s)’ sale of equity and the business’s sale of its assets.
How do you know when the right time to sell is? How do you get a business “ready” for sale? How do you go about finding potential buyers? How do you value your business? Once you believe you found the “right” buyer, how do you approach documenting the deal? Financial Poise contributors have written on all these topics and you can access a handy list of their articles in Business Transition and Exit Planning: Welcome to the Jungle!
Circling back to where we started, picking the right outside professionals is hugely important to getting to a successful finish line. But who are these outside professionals of whom we write? What do they bring to the table? How do you locate them? How do you decide who to interview and who to hire? Randy Joy Epstein shines light on these questions in her article, Assembling the Right Transaction Team: Tips for Selling Your Company Successfully.
GET SMARTER ABOUT MONEY, ONE WEEK AT A TIME™ Read Financial Poise Weekly™