The following is an excerpt from "Demystifying the Process of Selling Your Business" by OneAccord Capital President Scott Smith. To get your free copy of the ebook, click here.
Finding a buyer…
Small businesses generally sell with the help of a business broker while larger companies enlist the help of investment bankers. For the business in the middle, it’s tricky. Mid-size businesses are generally too large to interest the "job seeker" type of buyer, but too small to interest investment bankers. Private equity firms want to buy big, not small. So the in-between business owner needs to find a boutique investment banker who can assist in finding buyers.
…without getting screwed
First of all, avoid the Internet search. Guaranteed you will find plenty of investment bankers and brokers who are looking for their next business acquisition. But if you want to avoid the snakes of the industry, ask a trusted advisor. Your attorney, accountant or wealth manager can connect you with a reputable investment banker or business broker.
Do I really need a broker or investment banker?
Yes. You really need a broker or investment banker.
The majority of people have never sold a business and aren’t prepared for the many complications that attend the sale. You’ll be dealing with escrow account hold backs for indemnification, representations and warranties, financing part of the sale, legal contracts and much more. You want someone on your side who knows what they’re doing. Find advisors to help make your plan. Then work your plan and find more advisors to help sell your business. Do not go it alone. The cost of hiring these advisors is nothing compared to the headaches—and money—they will save you.
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