Choosing Your Advisors for a Business Sale

Selling a business involves legal, tax, and financial decisions that most owners face only once. The advisors you choose can make a meaningful difference in how much you keep, how smoothly the process goes, and how protected you are afterward.

Here's who you'll typically need, what each one does, and how to find the right fit.

Your CPA

Your CPA is often the most important advisor in a sale.

What they do: - Prepare and clean up financial statements before a sale - Document add-backs and adjusted earnings - Answer the buyer's financial questions during due diligence - Model how different deal structures affect your taxes - Advise on purchase price allocation and timing

What to look for: Experience with business sales, not just annual tax returns. If your current CPA hasn't worked on a sale before, consider bringing in one who has, at least for the transaction.

Your attorney

You'll want an attorney experienced in mergers and acquisitions, or business sales specifically. A general or family attorney may not know the market terms that protect sellers.

What they do: - Review the letter of intent before you sign - Negotiate the purchase agreement - Limit your exposure through representations, warranties, and indemnification terms - Review leases, contracts, and anything that needs consent to transfer - Protect your interests in any seller note or earnout

What to look for: Recent experience representing sellers in deals of a similar size. Ask how many business sales they've handled in the last few years.

Your financial planner or wealth advisor

A sale turns your business into money you'll need to manage for the rest of your life.

What they do: - Help you decide how much you need from a sale - Plan how the proceeds will support your retirement or next chapter - Coordinate with your CPA on tax strategy before the sale - Help with estate planning and how wealth passes to your family

What to look for: Someone who has worked with business owners before and after a sale. Understand how they're paid, whether by flat fee, hourly rate, or a percentage of assets.

Others you may need

• Business broker or M&A advisor, if you choose to market the business broadly
• Business valuation professional, for a formal appraisal
• Estate planning attorney, if a sale affects your estate or family
• Insurance advisor, to review coverage before and after closing

When to bring them in

Earlier than most owners think. Some of the most valuable tax and estate planning only works if it's in place before you agree to a sale. Ideally, your CPA and financial planner are involved a year or more ahead.

Questions to ask any advisor

• How many business sales like mine have you worked on?
• What will you need from me, and when?
• How are you paid, and what's the estimated total cost?
• Who else on your team will work on my deal?
• Can you share references from other business sellers?

Working with your team

At Legacy Lion Reserve, we welcome your advisors into the conversation from the start. Clear communication between your team and ours leads to better decisions and a smoother sale. If you're thinking about selling, let's talk.

This article is for general education and is not legal, tax, or financial advice.