Seller Resources
Who to Consult When Selling Your Business
If you're thinking about selling your business, three advisors can help you make decisions before and after you go to market: your business broker, an accountant with business sale experience, and a lawyer who specialises in mergers and acquisitions.
Each helps you answer different questions — "What could my business sell for?", "What might I keep after taxes and costs?", and "What am I agreeing to when I sign?"
Your business broker helps you prepare for sale and find qualified buyers
At Elite Equity Business Brokers (EEBB), we start by learning about your business, why you're considering a sale, and what you want from the transition. A complimentary business valuation can help you understand a potential selling range and identify issues a buyer is likely to raise. For example, if a large share of your revenue comes from one customer, it helps to have records that show how long the relationship has been in place and how it's managed. When you're ready to go to market, we prepare the listing, market the business confidentially, screen prospective buyers, and require a non-disclosure agreement before releasing detailed information. We also help you compare offers and coordinate the flow of information during due diligence.
When to bring in your broker
Start the conversation when you're seriously considering a sale. If you're a year or more away from listing, you have time to address issues that could affect how buyers view the business.
Your accountant helps you explain the numbers and understand the tax impact
Your accountant helps you prepare the financial records buyers will want to see, including year-end statements and current year-to-date results. They can help document adjustments to reported earnings, such as an expense that was genuinely one-time, and respond to financial questions from the buyer's accountant during due diligence. Your accountant can also help you understand how a proposed deal could affect what you keep after taxes and costs. Depending on the transaction, they may bring in a tax specialist.
When to bring in your accountant
Involve them before you list so there's time to organise your records and discuss tax planning. Bring them back into the conversation when you receive an offer with specific payment and deal terms. Ask them: "Should I structure the transaction as a share sale or an asset sale, and how much might I keep after taxes and costs under each option?" Your accountant will also be involved during the due diligence stage.
Your M&A lawyer helps you review the purchase agreement and prepare for closing
Your lawyer can review the purchase agreement, explain what you're committing to, and help negotiate any changes before you accept and sign it. Your lawyer also handles the legal work through closing. That may include identifying any consents needed for the sale and explaining obligations that continue after closing, such as commitments to help the buyer transition into the business.
When to bring in your lawyer
For the purchase agreement, EEBB recommends involving your lawyer once the buyer waives the due diligence condition in the Letter of Intent (LOI). If you have questions about a specific LOI term, such as exclusivity, you can ask your lawyer to review it before you sign the LOI.
EEBB can introduce you to experienced accountants and lawyers
If you're still looking for an accountant or an M&A lawyer, EEBB can introduce you to professionals with a proven track record of helping business owners through a sale. You can speak with them about their experience with transactions like yours and decide who's the right fit for your business.
Thinking About Selling Your Business?
Start with a confidential conversation with Elite Equity Business Brokers. We can discuss what your business may be worth, what you can do now to prepare, and when to involve your accountant and lawyer.
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