As you have built your small business by investing a lot of money, time, and effort, it will likely be your most valuable financial asset. So, selling your business unit is going to be an important and elaborate transaction and a first-of-its-kind experience in your career. Hence, your goal will be to get the maximum selling price. Meanwhile, the one who wants to acquire your firm will want to get it at the lowest possible price and most favorable buyer terms.
During the negotiation process, you will also have to safeguard the interests of your employees and senior executives. As such, there are incredibly high stakes involved in the deal, and your main challenge would be to find the perfect buyer. Because of this, you may have to get involved in long-drawn and complicated negotiations to zero down on the right buyer and get the transaction completed without any hiccups, delays or regrets.
All these will make the related negotiation absolutely unique and challenging because of which you may even feel that you are not fully equipped to handle it alone. So, to safeguard your interests at every stage of the transaction and boost your bargaining power, get the maximum price and best terms, and ensure the smooth execution of the entire deal, you may have to depend on several professionals or hire a team of advisors. The said team may consist of a consultant, investment banker, certified public accountant (CPA) and a business lawyer.
While the consultant will help you zero down on the perfect buyer, the investment banker can decide the appropriate valuation process and right selling price. In the meantime, the CPA can take care of the due diligence procedure and documentation work. He will also finalize the transaction terms and determine the compensation alternatives available to you. Finally, your lawyer will facilitate and execute the entire transaction by drafting the sales contract while ensuring that the terms of the agreement are in your favor.