3 tips for buying or selling a business in uncertain times

By DJ Charley, CPA

If you’re thinking of buying or selling a business, you may be waiting for that perfect time to act. Maybe it’s when interest rates come down. Or when the economy picks up. Or when the tariff situation is finalized.

But the thing is, we’re always going to be living in uncertain times. And despite the news headlines, there are positive things happening across multiple industries. Not everyone is hunkering down.

As we tell our clients: Don’t hold off on making a move in your business because of what’s going on in the economy. If you want to sell or grow your business, or buy a business, lean into it. Begin thinking about it now and take these steps make it a success.

Start with a strategic plan.

Let’s say you’ve decided that selling your business would fulfill your retirement goals. Or that acquiring a business would help you achieve your growth objectives. Both are major endeavors that require a lot of planning and thought.

This is where a strategic plan can help.

Think of developing a strategic plan as your first step in the selling or M&A process. Not only does it allow you to start having the right conversations but also it can help to increase the value of your business—which could be beneficial regardless of your plans.

Surround yourself with a solid advisory team.

Whether you’re buying or selling, it’s wise to not go it alone. Doing so can lead to leaving dollars on the table that you didn’t even know about.

Instead, assemble an advisory team to support you through the process.

Your advisory team should include your investment bank, accounting firm, and a good attorney. These professionals can help you address everything from the purchase agreement to due diligence and tax strategies. Most important, they can help you avoid the pitfalls of unturned stones.

Put key managers in place.

All too often I think the people side of things can get lost. This is especially true for owners who wear every single hat in the business. But it’s important to consider your internal management team—current or future—before making a big move.

For instance, if you’re selling, buyers will want to see that you’ve trained and developed key managers who can keep the operations going.

On the flip side, if you’re buying, it’s important to consider: Whom are you buying? Or will you absorb the entity and put in your own managers?

Move forward with confidence.

If you’ve been holding yourself back from what could be a revolutionary next step in your business, consider this: If not now, when?

When you’re ready to explore your options, our team is here to light the way. We can guide you through everything from assembling your advisory team to conducting financial due diligence.

Some of the things we help our clients with include performing a valuation of their business and pointing out those key value drivers, SALT studies, tax structuring, quality of earnings, design incentive plans to motivate key employees, and assisting with working capital calculations. Think of us as your quarterback for the selling or M&A process.

The more clearly you can see the big picture, the more confidence you’ll have when making decisions. If you’d like to start shining a light on your goals, contact us today.