When an owner decides to sell, the first call is often to a business broker. That can be the right call. It also helps to know who else belongs on the team and what to have ready before anyone starts marketing your business.
The business broker
Brokers list and market businesses, find and screen buyers, and manage the process through to closing. They are usually paid a success fee, a percentage of the sale price, so they are motivated to close. Many specialize in smaller owner-operated businesses. Ask about their experience in your industry, how many deals they have closed, and what happens if the deal does not close.
The M&A advisor
M&A advisors do much the same work on larger or more complex deals, often with a stronger focus on structuring and negotiation. Fee structures vary. Some charge a retainer plus a success fee. Ask for the fee structure in writing.
Your accountant
Your accountant knows your financials and the tax consequences of how a sale is structured. Early planning can change what you keep after tax. Bring them in before you sign anything.
Your lawyer
Your lawyer reviews and negotiates the agreements: letter of intent, purchase agreement, non-compete, employment terms. Choose someone with business-sale experience, not only general corporate work.
Diligence-readiness review
Before a buyer's team examines your financials, an independent review can show what they will find: add-backs that cannot be supported, working capital questions, documentation gaps. It is a separate job from selling the business. It helps your broker, your accountant and your lawyer because it gives them cleaner information to work with. Xito Capital does this work. It does not replace your broker, accountant or lawyer, and it works alongside them.
What to ask any advisor before you hire them
- How are you paid, and when?
- How many businesses like mine have you helped sell?
- What will you need from me, and by when?
- Who will I deal with day to day?
- What would make you advise me not to sell right now?
The order that usually works best
Get your numbers and documents in order first. Choose your accountant and lawyer. Then choose the broker or advisor, and start marketing the business only when you are ready for a buyer's scrutiny.
Take the Free Score →