Categories: Sell a Business

Truth #3: Selling a Business Requires Advisors

Selling a business is not easy, simple or risk free.

The truth is this is NOT a process you are going to do alone. You are going to need advisors. Your advisors are the few people that you can tell about your intentions to sell the business.

Advisors To Sell Your Business

Here are some of the advisors:

  • Accountant
  • Attorney
  • Business Broker
  • For Sale by Owner Consultant

Although there are many advisors you could have, there are only 2 advisors you MUST have and others are optional.

 Understanding Each Advisors Role

Here is a snap shot of each advisor:

Accountant

The Accountant  is the person that reviews the numbers for you and files appropriate tax filings after the sale. .

Your account is paid on an hourly basis or per project.

As you prepare to sell your business, you will need to get specific documents from your accountant.

The most common documents when preparing to sell are:

  • Last 3 years of tax returns
  • Current Profit and Loss Statement
  • Balance Sheet
  • List of Assets (Schedule A)

Once you have an offer, your accountant can

  • Calculate the net from the sale of the business after taxes
  • Determine the best deal structure to minimize your taxes (ask to assure this is part of their offering)
  • Advising about recapture (tax on selling assets that have depreciated below their selling price)
  • Advise on allocation (the price you are selling each component of the business).

Your account is a critical advisor in this process.

Attorney

Your attorney is paid on an hourly basis or per project.

As you prepare to sell your business, you will need to have a non-disclosure agreement.

Once you have an offer, your attorney can

  • Review the document
  • Draft Addendums as needed
  • Advise on terms of the deal
  • Compose non-compete
  • Advise on the closing of the business

Your attorney is a critical advisor in this process.

Business Broker

A Business Broker is paid a percent of the selling price and only when your business is sold.

A business broker is a “done for you” way to sell your business. They are trained professionals that offer years and often decades of experience to selling a business.

They do the majority of the work for and are compensated for this when the business closed.

A business broker can be valuable, if you do not have the time or energy to sell your business yourself.

A business broker is optional when selling your business.

For Sale by Owner Consultant

A For Sale by Owner Consultant provides similar services as a business broker, but is engaged for a specific time frame and for a flat fee.

Services that RPR Associates offer as a For Sale by Owner Consultant:

A for sale by owner consultant provides the information and forms you need to sell your business yourself for a fraction of the cost of a business broker.

The Truth About Selling Your Business

TRUTH: Your Accountant and attorney are the two required advisors that you need to sell a business. A Business Broker is optional.

TRUTH: RPR Associates can offer you all the services (and more) that you need to sell your business yourself for a flat fee instead of a commission allowing you to keep more from the sale of your business.

 

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Posted on Jan 7, 2014

Contact Info – David Bandars

 12110 Port Grace Blvd. #201, LaVista, NE 68128

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