Gateway School Sales

1000 E. Beltline Road

Suite 204

Carrollton, TX 75006

Phone:  (972) 267-9003

When you are buying a business it is not the right time to fly solo.  It is often one of the most significant financial events you will ever experience.  You need to develop a team of professionals to assist you through this process.  The team typically includes the business intermediary, legal advisors, financial advisors and industry experts.

Business intermediaries coordinate between the seller and the buyers to facilitate productive discussions working out differences effectively.  The Intermediary will lead your team to the successful sale and transition of your business to new management.  The Intermediary’s responsibility is to work with each member of your team and the members of the buyer’s team; keeping all people focused on the final transaction in a timely manner.

Legal advisors are typically attorneys.  Types of attorneys that get involved in transactions are transaction attorneys, real estate attorneys, or possibly other attorneys specializing in particular industry to help with structuring the transaction in the most beneficial way.

  • Transaction attorneys specialize in the financial, tax, planning and procedural matters associated with buying a business.  These are attorneys that you would not typically use in everyday business matters.
  • Real estate attorneys specialize in negotiating real estate contracts and real estate leases and can be very useful during negotiations during the purchase of real estate or transfer/assignment of a lease.
  • Various other attorneys may be required in a transaction.  Examples of these include an employment attorney, immigration attorney, licensing attorney or other attorneys highly experienced in particular industry to help with structuring the transaction or transferring contracts or operating agreements.

Financial advisors that are typically involved in transactions are bookkeeping CPA firm, transaction CPA firm and other financial advisors.

  • Your accountant or CPA will work with you to determine the type of entity to form for your acquisition and the operation of the business.  It is prudent they work with the transaction attorney to ensure the entity provides appropriate legal protection.  Your accountant or CPA will analyze the financial data of the business during the due diligence process.  This process is critical to selecting a profitable, sustainable business.  In addition, you should use a transaction CPA.
  • You will want to have your CPA that are going to file your taxes for your business involved in the transaction so that when he is ready to file your taxes he understands the process and knows how to allocate the money that was used in the transaction.  But many of these CPAs are not familiar with the details of a complex acquisition so you may want to use a transaction CPA firm to assist you.
  • Transaction CPA firms are a great asset when you are negotiating the deal structure.  These firms are knowledgeable in ways to allocate and structure transactions the typical bookkeeping firms are not familiar with because of their limited exposure to complex transactions.
  • The other advisors you will have involved in a transaction are bankers, investment advisors, insurance advisors and others.  Bankers are the most common ones that buyers use because they typically don’t have all cash to buy a business.

If you are purchasing a business in an industry you are not familiar with, you may also want to use an industry expert.  This industry expert could be someone you know that has worked in that industry, owns a business in that industry or it could be a consultant that consults in that industry professionally.

 

Prepare Business For Sale

 

Value & Price Business

 

Assemble (CBR) Confidential Buyers Business Review

Seek & Screen

 

 

Resources

Resources

Resources

Resources

 

 

Accountant

Consultants

Intermediary

 

Accountant

Appraiser

Intermediary

 

Intermediary

 

 

 

Intermediary

 

 

 

Close the Sale

 

Structure and

Negotiate the Deal

Due Diligence

 

Resources

Resources

Resources

 

Attorney

Intermediary

Commercial Escrow

 

Attorney

Accountant

Broker

 

Attorney

Accountant

Broker