Assembling a Team to Help You Sell Your Company

Like so many entrepreneurs, you have spent years building your company. Along the way, you have poured everything into it. You have invested your time, your money, and in most cases, your heart and soul. Many other things are important to you, and some of them more important, but this company exists because of you.

And then life happens. As it does, you reach a point where you begin to consider whether it’s time to sell. Or at least when that time might come. Some owners plan to transition ownership to a family member. Others consider an ESOP. This article focuses on selling to a larger competitor or to a financial buyer such as a private equity firm or family office.

Most business owners have never sold a company. The rest of this post outlines the first three steps in assembling the team that will help you maximize the return on your life’s work. There are parallels to selling a home, something many people have done, and there are important differences. We’ll also cover more details about each step in future posts.

Prepare

Much like selling a home, the first step is preparing your business for the market.

You may be satisfied with how your company operates today. If you weren’t, you likely would have made improvements already. The challenge is that you see your company from the inside. To sell successfully, you must shift to an external, market-based perspective.

Just as you think about how customers view your products or services, you must now consider how potential buyers, either strategic or financial, will evaluate your company.

Buyers typically assess around ten core areas when deciding whether to pursue an acquisition. These include revenue and profit trends, customer concentration and market position, leadership depth, scalability, and detailed financial performance, among others. The strongest transactions begin with an honest assessment of these factors, followed by deliberate improvements that make the business more attractive.

The good news? Every improvement you make to prepare for sale will also strengthen how your company runs today.

This process is similar to updating a kitchen or repainting before listing a house. The goal is to increase appeal and create competition among buyers. More interested buyers typically lead to a higher sale price, and give you options in choosing who will own the company going forward. Whether you are staying involved or stepping away, you still care deeply about its future.

There are professionals who can help with this preparation. Valuation specialists, CPA firms, and independent advisors experienced in transaction readiness can provide objective assessments and guidance.

Legal Counsel

In my view, this is the most critical resource you will engage in the transaction process.

When selling a home, you often don’t need an attorney. The process is standardized, and realtors and title companies manage the legal mechanics. Selling a business is far more complex.

Buyers are not simply purchasing assets; they are acquiring a cash-generating enterprise. They will evaluate not only price, but also working capital requirements, future capital expenditures, and risk exposure. During diligence, they will request an extraordinary level of detail. The purchase agreement will address numerous scenarios based on the buyer’s past transactions, especially where things did not go as planned.

Your M&A attorney manages this complexity.

Hire the best one you can find and afford. Conduct your own diligence on their experience and style to ensure alignment. Transaction work is highly specialized. While your long-time corporate attorney may be invaluable for operating your company, negotiating and structuring an M&A deal requires focused expertise. If your current counsel does not specialize in this area, they should help you find someone who does.

Business Broker or Investment Bank

After your M&A attorney, this will likely be your most important external advisor.

Similar to a realtor in a real estate transaction, brokers and investment banks position your company in the market, bring qualified buyers to the table, and quarterback the sale process. Their compensation is typically tied to the transaction value, aligning their financial incentives with yours.

The right choice depends largely on company size and expected enterprise value.

As a general guideline, companies under $10 million in enterprise value are often best served by business brokers. Companies above $20 million are typically within investment bank territory. There is meaningful overlap, and other factors may shift that range.

Buyer profile is another differentiator. Brokers often work with local or regional buyers and transactions financed with SBA or traditional bank debt. Investment banks typically access national or international buyers, private equity groups, and institutional capital. Transaction complexity may also point toward an investment bank.

Fee structures differ as well. Brokers often charge a higher percentage of the sale price with minimal or no retainer. Investment banks usually require a meaningful retainer, with a lower percentage of the sale price.

Summary

Few events in a business owner’s career compare to selling a company. The process can be intellectually demanding and emotionally taxing. It will likely test you more than once before reaching the closing table.

Just as building and running a successful company is a team effort, so is preparing for and executing its sale. Surround yourself with experienced specialists who understand their respective roles and work well together.

You will be glad you did.