A business sale rarely belongs to one advisor. The transaction may be led by an M&A advisor, but the outcome can affect nearly every aspect of an owner’s financial and personal life.
That means the best time for the advisory team to begin coordinating is usually before the business is formally on the market.
Each advisor brings a different perspective.
The M&A Advisor: What Does the Market Say?
The M&A advisor can help the owner understand:
- Potential buyer universe
- Market positioning
- Transaction structure
- Buyer outreach
- Valuation expectations
- Negotiation
- Process management
Their job is to help answer: “How should we take this company to market?”
The CPA: What Do the Numbers Say?
The CPA can help evaluate the financial picture and identify issues that may become important during diligence.
Questions might include:
- Are the financial statements clear?
- Which expenses are truly non-recurring?
- How should EBITDA adjustments be supported?
- Are there tax considerations?
- What financial information will a buyer want?
The goal is to make sure the financial story of the founder and business is understood.
The Attorney: What Are the Risks?
The attorney can help identify legal and contractual issues before they become transaction problems.
That can include:
- Customer contracts
- Employment agreements
- Intellectual property
- Leases
- Litigation
- Change-of-control provisions
- Transaction documents
Early legal review can be valuable because some issues are easier to address before a buyer is involved.
The Wealth Advisor: What Happens After the Sale?
The wealth advisor brings a different question to the table: “What does the owner’s financial life look like after the transaction?”
The sale may represent a significant percentage of the owner’s net worth. That means the conversation can extend well beyond the transaction itself. Liquidity, investment strategy, taxes, estate planning, charitable giving, and long-term spending may all need to be considered.
The Advisors Should Talk to Each Other
This is where coordination becomes important. For example, a transaction structure that looks attractive from a business perspective may have different tax or wealth-planning implications.
A business decision that improves the company’s marketability may take time to implement. A legal issue discovered shortly before going to market may affect the timeline. The earlier the advisors understand one another’s priorities, the more effectively they can work together.
Start Before the Owner Is Ready to Sell
One of the biggest mistakes is waiting until the owner says: “I want to sell this year.”
At that point, there may be limited time to address issues. A better conversation may begin years earlier: “If you think you may sell someday, what would we want the business to look like when that time comes?”
That gives the advisory team time to identify gaps, establish priorities, and help the owner make decisions that support both the business and the owner’s long-term goals.
When those perspectives come together early, the owner is better positioned to make informed decisions when the opportunity to sell actually arrives.
