Unwillingness to utilize professionals when selling exiting a business

Common Mistakes To Avoid When Exiting A Business – Unwillingness to Leverage Professionals

Posted on October 16, 2013 · Posted in Blog

As briefly touched on in the previous post, a key part of the preparation process and the entire selling process is leveraging professional advice and services. These ‘professionals’ can include CPAs, attorneys, consultants, brokers, and your trusted advisors.

Unwillingness to utilize professionals when selling exiting a businessThe most common and obvious reason for avoiding the use of professionals is the perceived high cost. While it is certainly true that they can command high hourly rates or fees, it is usually for good reason (at least for the good ones). They possess the necessary skills and expertise you may need, and most likely do not have, to prepare your business to sell.

While avoiding the advice and services of qualified professionals may appear to save you money in the short-term, doing so could actually lead to exponentially higher costs and major headaches further down the road. Problems that may have easily been avoided with the right people by your side.

Many astute sellers leverage professionals for the following reasons:

  • Financial statement preparation
  • Tax preparation
  • Legal documents
  • Escrow account services
  • Lease, company and title transfers
  • Marketing the business
  • Creating and evaluating strategies
  • Valuation
  • Advisory services
  • Negotiations
  • Post sale support
  • Confidence

The key is seeking out honest and reliable professionals that you can count on to efficiently service your needs by keeping costs low, but still providing a high value of service. You can lean on family, friends or acquaintances to find recommended and trustworthy professionals to assist you through this process. Try and seek out past clients that have worked with the individual or firm, and check if there are any public reviews about them online.

Trusted, experienced professionals will not be an expense, but actually can be an investment in which business owners will receive a significant return.