On paper, the sale of an engineering business looks pretty straightforward. You simply need to set a selling price and negotiate with buyers who come knocking and sell to the highest bidder. The truth is, it is never that easy. There are so many moving parts. You need to get the business ready for sale, prescreen potential buyers, take care of the legal work, maintain confidentiality, etc. As a result of all this work, working with a business broker for engineers San Diego trusts is the safest way. However, the broker is not the only professional you will need on your team. Here are the professionals you will need.
An experienced business broker
A business broker for engineers San Diego trusts is the first professional you should bring onboard. The first order of business for a broker is making sure your engineering company is ready for sale. Second, the broker will help with a business valuation, draft a confidentiality agreement and choose the right transition method. The broker will also help with finding the right buyers, assist with negotiations, paperwork as well as manage your expectations throughout the sale. Simply put, a business broker is the most important member of your team.
In most cases, your business broker will assemble the rest of the team. Keep in mind he has sold many businesses similar to yours. Therefore, he understands what goes on in the sale and which skills the right professional should have. Moreover, allowing the broker to assemble the rest of the team will ensure you only have one point of contact throughout the sale.
The main role of the attorney is to offer legal representation throughout the sale. Prior to signing any legal paperwork, the attorney will review them for you. The attorney will also draft all sale-related contracts. Going through the sale with the involvement of an attorney can be very risky.
Taxes will be involved. It is the role of your accountant/CPA to handle all tax-related paperwork and all relevant financials. The accountant will be advising you on such issues as tax ramifications of the sale, how to lower the tax burden without impacting the buyers and help with the signing of the non-compete agreements. The account will also be instrumental during business valuation. He will also help allocate a fair sale price between assets and goodwill.
Having the right team in place will guarantee that the sale of your engineering business proceeds smoothly. In addition, your business broker for engineers in San Diego may recommend working with additional professionals not included in this list, such as consultants.