When preparing for the exit of your business, envisioning the final handshake that seals the deal is exhilarating. However, achieving an extraordinary exit demands meticulous preparation, strategic planning, and, most crucially, assembling the right deal team. Your deal team is your advisory board, your strategists, and your confidantes throughout the exit process. Here's why you need a deal team, who should be on it, the benefits of having one, and the pitfalls of going it alone.

Why You Need a Deal Team

A successful  exit isn't just about finding a buyer and signing on the dotted line; it's about maximising value, ensuring a smooth transition, and aligning the exit with your personal and financial goals. This complex process involves various moving parts, including financial analysis, legal considerations, negotiations, and tax planning. A deal team provides the expertise and guidance needed to navigate these challenges and capitalize on opportunities.

Who Should Be in Your Deal Team

M&A Advisor

An M&A (Mergers and Acquisitions) advisor is crucial for identifying potential buyers, valuing your business, and negotiating terms. They bring market knowledge, negotiation expertise, and a network of potential buyers, making them invaluable in securing the best possible deal.

Exit Coach

A n Exit Coach specialising in exits can help you prepare your business for sale, identifying areas for improvement that can significantly increase your company's value. They also assist in strategic planning, ensuring your business continues to operate efficiently during the transition.

Accountant

An accountant with experience in business sales can provide crucial financial analysis, help prepare your financial statements, and ensure that your books are in order. They play a key role in presenting your financials to potential buyers in the most favourable light.

Wealth Manager

Exiting your business will significantly impact your personal wealth. A wealth manager can help you plan for the financial windfall, ensuring that the proceeds from the sale support your long-term financial goals and lifestyle.

Tax Advisor

A tax advisor is essential for understanding the tax implications of the sale and for structuring the deal in a tax-efficient manner. They can help minimise your tax liabilities, maximising the amount you keep from the sale.

Legal Team

Finally, a legal team with experience in business transactions is crucial. They will handle the due diligence process, draft and review contracts, and ensure that all legal aspects of the sale are in order. Their expertise is vital in protecting your interests and ensuring a legally sound transaction.

Benefits of Having a Deal Team

A well-assembled deal team offers numerous benefits. It ensures that every aspect of the sale is handled by an expert, which can significantly increase the value of the deal. The team can anticipate and mitigate risks, navigate complex negotiations, and ensure that the transaction aligns with your personal and business goals. Furthermore, having a team allows you to continue focusing on running your business, preventing the sale process from affecting your business's performance.

The Pitfalls of Going It Alone

Attempting to navigate an exit without a deal team is fraught with risks. The complexity of business exits means that overlooking key details, failing to optimise the deal structure for tax purposes, or inadequately preparing your business for sale can significantly reduce the value of your exit. Without the right expertise, you may also find yourself outmatched in negotiations, potentially resulting in unfavorable terms. Furthermore, the immense time and effort required to manage the sale process can detract from running your business, potentially affecting its performance and, by extension, its sale price.

Conclusion

Creating your deal team is a critical step in preparing for a successful exit. By assembling a team of experts, including an M&A advisor, an exit coach, an accountant, a wealth manager, a tax advisor, and a legal team, you position your business to maximise its value and ensure a smooth transition. The expertise, guidance, and support of a deal team not only enhance the outcome of your exit but also allow you to focus on what you do best—running your business until the day you hand over the keys.

If you are considering an exit in the next couple of years please contact us to discuss how our deal team can make your exit as stress free and enjoyable as possible.  

You may also benefit from taking our complimentary assessment to see how prepared you are for a successful exit.