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Selling a Business – Step 2

December 22, 2016

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Once you’ve determined a valuation range for your company, as discussed in last week’s blog, the second step in selling a business is assembling a sell team.

As some are well aware, selling a business for its highest and best value requires a lot of time, patience, research, planning, preparation, strategy and teamwork. Keeping this in mind, we will move our focus to developing a sell team.

The assembly of the sell team is comprised of two components:

  1. An internal component involving the company’s management; and
  2. An external component comprised of the external accountants, lawyers and professional advisors.

The internal members typically consist of the company’s executive management team, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) and/or controller. The internal team members will work extensively with the external team members in providing the company’s selling information, which includes the company’s financial statements and tax returns, business plans, marketing materials and other relevant documents.

The external team members are generally comprised of various professionals, including the external accountants, lawyers and other professional advisors who, from working with the internal team members, provide objective advice to the business owner (seller) and work in the business owner’s best interests. The external team members also provide services ranging from preparation of the necessary sell documents, analysis on the company’s historical financial operations and results, tax and structuring advice, as well as aid in finding and negotiating with prospective buyers.

Once the sell team has been formed, the next step is to start collecting and preparing the necessary information and data that a buyer will want to see. Stay tuned for next week’s blog where we delve deeper into the information collection process.

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