The successful sale of a middle-market business requires a dedicated team of professionals experienced in mergers and acquisitions (M&A). Assembling a team that knows how to sell a business can help sellers attract quality buyers, get the best price available and avoid roadblocks to closing. So if you’re ready to sell, be sure to include the following pros on your M&A team.
An investment banker who specializes in M&A consulting
The role of the investment banker is to look at the big picture and oversee all activities pertaining to the sale of your business. A top-notch M&A advisor will have connections, work diligently to assess the marketplace and identify company characteristics that prospective buyers desire. Your investment banker will also help assemble this team of professionals and act as a Team Captain to keep activities coordinated and on task. The investment banker also knows what elements other key players need to bring to the table in order for the sale of your business to be a success. Some of the duties performed by your investment banker include:
- Develop a valuation for your business.
- Identify changes the business requires to be desirable.
- Apprise you of financing options related to the deal.
- Create a compelling case to create excitement about your business in the market.
- Set up and conduct a “silent auction” environment where buyers compete.
- Research, vet and present to prospective buyers.
- Assist with deal negotiations.
A team of supporting players to handle the minute details
In order to best position your business for sale, you need specialists from a number of disciplines to dig in, do research, mind the small details and handle due diligence. They will review your company inside and out, so all of your financials are in order. These professionals should specialize in M&A, and include:
- Accounting and forensics pros who review financials prior to sale such as quality of earnings, normalized working capital and debt owed. They also play a key role in determining company valuation and will prepare and revise financial documents that buyers, attorneys and government agencies require.
- Tax pros who can advise on the most tax-efficient ways to structure a deal and manage the transaction. They will also recommend the type of tax entity and domicile that best fits your business.
- Human resources pros who will examine the company culture, review employee efficiencies and develop an organizational chart that appeals to buyers. They also prepare documentation and agreements for employee separations, compensation packages and a plan to retain employees integral to the company’s success.
An attorney or legal firm that specializes in M&A deals
Along with preparing legal documents, a lawyer experienced in M&A can save you headaches, money and long-term legal woes. They are closely involved and a crucial resource throughout the negotiation process. Your attorney will also identify and recommend terms that protect you from legal risks during and after the sale. Look to your legal team for insight and direction regarding regulatory requirements, too.
A wealth advisor to develop your post-sale financial plan.
If selling your company is in the cards, optimizing the sale proceeds should also be top of mind. Look for a financial pro who can help you navigate your and your family’s financial future post sale. They can explain the saving and investing options available to you based on your financial goals and aspirations. Selling a business is a big decision, don’t try and go it alone. If you’re ready to move forward, contact us at Allegiance Capital so we can help you assemble a team of experienced M&A advisors and team players who will mind the details, present your business in the best light and set you up for a promising future.
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Keywords: middle market; M&A consulting; how to sell a business; selling a business; selling your company; M&A advisors