The importance of credible transaction advisory service support
You’ve spent years — maybe even generations — building and growing your business. But when it comes time to sell, do you know who you can trust to get the most value out of all that hard work?
With the baby boomer generation heading toward retirement, the largest generational wealth transfer in history is currently underway. Small- and medium-sized businesses across the country are heading to market, and if you’re considering joining them, it may be time to decide who you want advocating for you during the process. Selling your business can take several months, so it’s important to work with an advisor at each step along the way.
What are transaction advisory services?
Transaction advisory services (TAS) consists of buy-side and sell-side financial and tax due diligence services. From the seller’s perspective, a good TAS team can help get the most value from the sale of a business as well as facilitate the complex negotiations surrounding every business transaction.
With the right TAS representatives on your side, you can sell your business with confidence, knowing you’re being backed by an experienced team of professionals who are looking to get the best possible deal for you at every step of the process.
Who should you trust?
Your personal attorney or accountant may seem like a safe bet. Perhaps they’ve been working closely with you for years and they likely know your business and its finances inside and out. But selling a business is a major endeavor and every case is unique. That’s why it may be advisable to consult outside assistance with specialized experience to assist you and your advisors during the process of such a major transaction, and to consider a firm with a dedicated and experienced TAS group with a national presence.
When selling your business — perhaps the most significant decision of your financial life — you want a dedicated team of professionals who know the ins and outs of very complicated transactions, with expertise in a wide range of industries. They’ll have the experience to identify potential complications and provide solutions.
Questions you should be asking
When considering a TAS group to help with your sale, there are a few key questions you should be considering:
- How much experience do they have? Business transactions are unique, and the more experience your TAS representatives have, the more likely it is that they’ll be able to navigate complications and special circumstances.
- How big is the deal team? Much like experience, the size of the team you’re working with is a key factor in how able and quick they are to handle complicated transactions.
- Are they solely dedicated to TAS? You want to work with professionals that truly understand the field and aren’t merely offering TAS services on a part-time basis.
Know your EBITDA
You don’t want to leave money on the table when selling your business. Maybe you’re looking for capital to help fund a new venture, or you’re simply cashing in on your years of hard work to enjoy your retirement. Whatever your reasons for selling, it’s essential to start off with a realistic understanding of what your business is worth.
A credible TAS team can work with your management and advisors to ensure you have an accurate representation of your business. They can give you a clear picture of your cash flow so you can be well positioned before going to market.
Your potential buyer is doing their due diligence, and you want to make sure you’re on the same page before starting negotiations. Any issues that arise because you’re unprepared could lower your ultimate selling price — or tank the deal entirely.
With credible TAS support on your side, these potential issues can be identified during the sell-side process and mitigated before going to market. A good support team will anticipate any issues and proactively address them, so you can start negotiations with confidence.
Additional services
Another advantage of working with a comprehensive TAS team over a smaller firm not solely dedicated to TAS is that it offers you so much more than just support during the selling process. Due diligence is an incredibly important and ever-expanding practice covering your people, your technology, your finances and more. As a seller, you will need a firm with dedicated offerings to tackle any potential issues that might arise during the process
There’s also been an uptick in buyers and sellers using representations and warranties insurance (RWI) as opposed to sellers’ escrows, and RWI underwriters want to see due diligence in areas other than just the financials. A credible TAS team can offer additional services to help make your business more attractive to potential buyers.
After the sale
Congratulations, you’ve identified a potential buyer — now what? A credible TAS team can also assist you post-transaction, offering NWC true-ups to ensure you’re getting a fair deal, and opening balance sheet preparation to facilitate a smooth transition.
How Wipfli can help
Our dedicated TAS professionals have successfully navigated thousands of business transactions and can offer you dedicated one-on-one support throughout the process, with direct partner involvement so you can be assured high-quality service
Our team is solely dedicated to TAS, and we have the experience to keep you ahead of the curve during complicated negotiations. We’ll give you clear and detailed look at your EBITDA, so you can have confidence during every step of the process.
No matter what your unique business situation, we likely have a representative who has seen it before and can help find solutions. To learn more, visit our transaction advisory services page.
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