Selling a business is one of the most significant financial and personal decisions an owner will ever make. Whether you’re asking, “Who can sell my business for me?” or “Who can help me sell my small business?”, the truth is that no single person can handle every aspect of a successful sale. It takes a team of specialized advisors to navigate the complexities of negotiations, legal compliance, tax planning, and post-sale wealth management.
If you’re still deciding when to start the process, check out our recent article “Why Early in the Year Is a Good Time to Go to Market” for insights on timing your sale.
Below, we’ll break down the key advisors you need when selling your business in California and why each plays a critical role.
1. M&A Advisor (Your Lead Strategist)
The most important advisor in your transaction is your mergers & acquisitions (M&A) advisor. This professional acts as the quarterback of your deal, guiding you through every stage of the process, from preparing your business for sale to negotiating the best possible terms.
Why an M&A Advisor Matters
- Buyer Network: M&A advisors are skilled at identifying prospective buyers including both strategic acquirers and private equity groups.
- Marketing and Competition: The key to knowing that you got the best deal available from the market is to get multiple offers; that only happens when there is competition for your business. M&A advisors and investment bankers both research the market to identify prospective acquirers (strategic companies and private equity groups) and then proactively market your business to those prospects.
- Deal Structuring: They negotiate the purchase price including how and when it’s paid, holdbacks, earn-outs including timing and calculation metrics, and other important deal terms, working with your attorney and other advisors, to maximize your outcome.
- Confidentiality: They manage the process discreetly, protecting your business relationships and employees during the sale process.
Business Broker vs. M&A Advisor vs. Investment Banker
If you’ve wondered, “Who’s right for the sale of my business?”, here’s a quick comparison:
- Business Broker: Best for smaller businesses (typically under $10 million in revenue). Business brokers generally market their clients by listing the businesses for sale in online registries of hundreds or thousands of businesses for sale. Buyers are often individuals or small companies, so the transactions tend to be smaller and less complex. Business brokers in California have real estate licenses issued by the California Department of Business Oversight.
- M&A Advisor: Ideal for lower middle-market companies (typically from $10–100 million in revenue, although can go lower or higher). M&A advisors, who often have investment banking licenses, are skilled at managing the entire sale process including marketing privately held companies to both larger strategic companies and private equity. Licensed by the SEC and FINRA, or can be business brokers who describe themselves as M&A advisors.
- Investment Banker: Typically only work on very large transactions ($100+ million), often involving public companies or large institutional investors. Investment banking licenses are issued by the SEC and FINRA.
For most California business owners in the $10–100 million revenue range, an M&A advisor such as Shoreline Partners, licensed as an investment banker, is the right choice. These firms and individuals combine the hands-on approach of a broker with the sophistication of an investment banker.
2. Transaction Attorney
A skilled transaction attorney will make sure the transaction documents reflect the deal that was agreed to with the buyer and that you understand important terms in the documents. Importantly, they focus on minimizing your exposure to potential liabilities after closing. California’s business, legal, and regulatory environments add complexity, so having an attorney experienced in M&A transactions, not just general business law, is essential.
3. Tax CPA
Selling a business triggers significant tax implications. A tax CPA helps works as part of the team to make sure you understand the tax impact of a proposed sale and can advise on strategies to minimize or defer taxes related to the sale.
4. Wealth Advisor
A wealth advisor will help you understand what you need from a sale for post-sale income, philanthropic objectives, etc. That can be critical in helping you assess whether acquirer offers are “enough” or not. After the sale closes, you’ll need a plan for managing your newfound liquidity. A wealth advisor helps with investment strategies, estate planning, and long-term financial goals. Their role ensures that the wealth you’ve built through your business continues to work for you.
5. Insurance Broker
An insurance broker is an often-overlooked advisor who helps you manage risk during and after the sale. This includes tail coverage for potential prior business liabilities and adjusting your own personal insurance after the closing.
6. IT Professional
Buyers will scrutinize your technology infrastructure during due diligence. An IT professional ensures your systems are secure, compliant, and well-documented. They also assist with data migration and cybersecurity measures during the transition.
7. CFO (Internal or Outsourced)
Accurate financial reporting is critical to a successful sale. A CFO, whether internal or outsourced, prepares financial statements that will stand up to a buyer’s due diligence, and plays an important role in providing descriptions of your accounting policies and practices to the buyer and their due diligence team. Their work builds buyer confidence and supports the value negotiated by your M&A advisor.
Building the Right Team
Selling your business should never be a solo effort. It’s a coordinated process that requires expertise across multiple disciplines. At Shoreline Partners, we specialize in guiding California business owners through this journey, acting as your lead advisor and working with your existing advisors or, as needed, connecting you with trusted professionals, including transaction attorneys, tax CPAs, wealth advisors, and more.
Meet Our Team to learn more about the experts who will help you succeed. From initial consultation to closing and beyond, we work together to ensure every detail is handled with precision.
Ready to start planning your exit? Selling a business is a major milestone, and having the right advisors can make all the difference in achieving your goals. Contact us today to assemble the right advisory team and achieve the best possible result.