Emily Clarke

Why Having a Financial Advisor When Selling Your Business is Important

Are you thinking of putting your business up for sale? It's not as easy as selling a piece of property. You've spent years growing your business and reaching your current level of success. Once other companies and investors see your financial advisor book of business for sale, you'll start to receive offers that can be difficult to navigate.

Before you put your business up for sale, you need to have a financial advisor by your side. Here's why.

Mitigating Execution Risk

One of the biggest reasons to get help from a financial advisor is to manage all the risks of selling your business. There are many complex logistics to navigate, and the market is more competitive than ever. Transactions can quickly fall through, and buyers are more sensitive to anything negative they uncover while doing their due diligence. So, what's originally a fantastic offer might eventually become a nightmare as you approach closing.

Experts can manage these risks upfront when you put a financial advisor book of business for sale. Advisors will organize data and create a knockout investment narrative that helps mitigate execution risk. They'll also keep things organized and move quickly to drive a deal to close. Their assistance can make all the difference during the sales experience, and many sellers quickly realize they can't navigate the process without an expert guiding them.

Understanding Your Options

If you're lucky enough to receive multiple offers, you'll be glad that a financial advisor is there to help. Skilled advisors understand complex deal structures. They also understand different buyer types and have more insight into your ultimate goals.

You may receive offers from corporate buyers or private equity firms. The deal may include an employee stock option plan or a management buyout. Whatever the case, you need someone well-versed in these types of deals to help you make the right decision. Advisors can explain your options and discuss the nuances of every choice to help you make a good decision for your bottom line.

Author Resource:-

Emily Clarke writes about RIA and wealth management for financial advisors and more. You can find her thoughts at financial planning software blog.