Having a trusted team by your side is critical when selling a business. The right advisors can help you navigate the process smoothly and protect your interests. Depending on the size of your business and the range of potential buyers, different types of advisory services may be appropriate.
No matter the size or structure of your company, two key team members are essential. The first is an attorney experienced in transactions. Strong legal counsel is invaluable during a sale, and you’ll want someone who has handled multiple deals successfully. While you may not need this attorney right away, it’s smart to interview several early on and choose one you feel comfortable working with.
The second is a seasoned CPA who understands both your business and your personal finances. While your company’s finance team can manage many of the data requests during the sale, your CPA plays a bigger role. Due diligence alone can be exhausting, and tax implications often catch sellers off guard. A knowledgeable CPA can help you plan ahead and develop strategies to manage your post-sale tax burden. Many sellers are surprised by the actual proceeds that remain after taxes.
Additionally, If you plan to market your company broadly to attract multiple buyers and offers, you’ll likely need a transaction advisor. This professional will handle the marketing, negotiations and process management so you can stay focused on running your business. Choose an advisor who understands your industry and the nuances of your operation.
Local business brokers, M&A advisors and investment banks all facilitate business sales, mergers and acquisitions. Each type brings different expertise and operates at different scales with varying services and costs. Here’s what each advisor typically offers:
Local Business Broker
- Focus: Small, local “Main Street” businesses
- Clients: Individual entrepreneurs or small business owners
- Fee Structure: Percentage-based transaction fee with a minimum, paid upon closing
- Expertise: General understanding of local markets and basic financial analysis. May lack deep industry or financial specialization.
- Process: Straightforward transactions with fewer formal requirements
M&A Advisor
- Focus: Mid-sized or lower-middle-market businesses with more complex deal structures
- Clients: Established business owners, private equity groups, or corporate buyers and sellers
- Fee Structure: Retainer plus a percentage-based success fee with a minimum
- Expertise: Strong financial, legal and industry knowledge with access to professional networks such as lawyers and CPAs
- Process: Structured and detailed, often taking six to eighteen months to complete
Investment Bank
- Focus: Large corporations, public companies, or high-value private firms (typically $60M+ in deal value)
- Clients: Large enterprises, private equity firms, or institutional investors
- Fee Structure: Retainer plus percentage-based transaction fees, sometimes with additional advisory costs
- Expertise: Deep financial and legal capabilities, global reach and access to sophisticated financial tools
- Process: Highly formal with extensive documentation, regulatory oversight and timelines that may extend nine to twenty-four months
While fee percentages vary, smaller transactions generally carry higher percentage-based fees relative to deal size. Every attorney, CPA and advisor brings their own style and approach. What matters most is finding professionals whose philosophy and working style align with yours. This team will be looking out for your best interests, so choose people you trust who understand your goals and your market.