Page 8 - NBIZ Magazine April 2024

PART 3 OF 3

What Should One Do

with All Those Unsolicited Offers

to Buy One’s Business?

By Patrick Ungashick

n Part 1 of this series, I shared how to handle the Accountant
stream of inquires that one may receive about We will start with perhaps the most obvious advisor
potentially selling his/her business. I also discussed that one will need—an accountant. Most successful
Ihow to conduct an introductory call with an inquirer business owners have an existing relationship with an
if an owner decides to investigate a specific opportunity, accountant or accounting firm for tax and perhaps audit
including important mistakes to avoid and information services. Therefore, one probably does not need a new
one should gather. accounting relationship to assist with the potential sale
In Part 2, I explained how to prepare one’s company’s of the company. But one will need to make sure that his
initial financial statements to share with the potential or her accountants are informed about the situation and
buyer after signing an NDA, once reviewed by a qualified to provide the required advice and services.
specialist mergers and acquisitions (M&A) attorney. I Be sure to share the situation with your accountant
also provided two educational resources created by our at the earliest opportunity. One should verify that his/her
team at NAVIX to help a business owner evaluate if he/ accountant has extensive experience assisting business
she is ready to sell his/her company one can download owners with the tax, accounting, and transaction issues
our white paper “Top 10 Signs You are Not Ready to Sell that come with the sale of a company of one’s general
Your Company”, and to help determine if this potential size and characteristics. There is a good chance that
buyer might be the right deal, one can view our webinar one’s existing accountant is fully qualified in this area.
"Knock Knock!...How to Know if the Potential Buyer If not, often the accountant has a colleague that they can
at Your Door is a Waste of Time or the Opportunity of introduce into the situation.
a Lifetime". You will need your accountant to advise and assist you
In this final part of the series, we will explore the with some to all of the following issues associated with
importance of putting together an advisory team if you the sale of a company:
intend to pursue a sale of the company.
If you have reached this point in the article series, • Tax planning: evaluating the tax impact of a sale and rec-
that means you have been contacted by a potential buyer ommending any potential tax-saving strategies and tactics.
to acquire your business, and you have taken the first • Tax compliance: making sure that your company is cur-
steps of speaking with that party and providing them rent and compliant on all tax issues including: federal,
with company financial statements properly prepared for state, sales, and payroll taxes.
outside review. To proceed further, it is time to convene an • Assistance preparing the company for due diligence and
advisory team to guide you and your business through sale, including potentially providing an audit and/or a
this process. Let’s explore who needs to be on one’s team, quality of earnings (QofE) review as well as working
and the role that they will play. capital analysis.

8 NBIZ ■ APRIL 2024