April 03, 2019 in Entrepreneurship | by Matt Borowski

Selling a Business? Why a Financial Advisor is Key to Successful Liquidity Planning

Building a business is exciting, exhausting and sacrificial, but - finally - a day comes where an opportunity presents itself; someone wants to buy your business and you are open to selling it.

For any business owner in this position, there’s a lot to consider in evaluating whether or not a proposed transaction is worthwhile. One of the most important considerations is the financial ramifications of the transaction.

To best navigate these important financial events as a business owner, surrounding yourself with experts will lead to the most ideal outcome.


Selling Your Business

As an entrepreneur, there’s already plenty on your plate. Between the day-to-day responsibilities and the big picture decisions, there’s not much time left to thoroughly study mergers and acquisitions and become the resident expert for your business.

Instead, partnering with a financial advisor that has mergers & acquisitions experience could be invaluable as you navigate a transaction. Like with many major life events, it’s hard to truly understand what it’s like until you go through it yourself. Having a financial advisor that has first-hand experience in going through one of these major business events will be especially beneficial and establish a comfort level that might otherwise not be present. Even better is an advisor that has in-house mergers & acquisitions expertise as part of their core business.

 Knowing What Works For You

Ideally, you’ve been working with a financial advisor all along – even prior to the potential sale of your business. In that case, there’s arguably no one who knows more about the financial goals you hope to achieve in your life.

When considering a major event for your business, that wealth of knowledge about your finances and goals makes for more informed decisions. Throughout the process, your advisor can run scenario analyses on a multitude of variables (depending on the deal options) to determine how your net take-away from the sale will affect your ability to achieve your stated financial goals. An advisor should also be able to put the proposed valuation into context with regards to the current state of the public and private markets, helping you make a more informed decision.

Sometimes it’s tough to walk away when an offer comes in with a lot of zeroes, but the presence of a financial advisor can help ensure that the best decision is made – whether it’s yes or no – and is one that aligns with the prior financial planning work completed on your behalf.

The True North Difference

As an independent advisor, True North Advisors removes itself from the typical product-driven advice many business owners receive from other financial advisors. Instead, involving True North in these major business events allows the owner to bring in an advisory firm that doesn’t have a vested interested in selling them something, but rather in simply making smart financial decisions for their family and to grow their wealth.

True North is able to leverage its nearly 20 years of experience in building relationships with other professional advisors to ensure that clients have the correct team of experts around them for their particular situation. Additionally, True North’s recent strategic partnership with Western Research & Management brings in-house mergers & acquisitions experience directly to its clients.

It’s all about completing a more informed transaction for the client’s business that will position the owner to achieve both their short-term and long-term financial goals. 

Filed Under: Entrepreneurship

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