5 Effective Traits to Help Business Owners Build a Dream Team During a Sale

Building a dream team for your business clients takes time, finesse and communication. Whether you’re an orchestrator for legal, financial, or general business issues, building a strong internal team that can help the new owner(s) of a business succeed after an acquisition is key to more efficient and successful acquisitions.

If the business owner is looking to sell a business, it’s important to add value beyond your own expertise to make your company more marketable and, in turn, more valuable.

The acquiring company will do their due diligence and will be looking at a few key elements:

1. Strong, Capable Management Team

Continuity of business after the sale is always a concern for buyers. If the owner is the face of the business, it can be difficult to maintain sales levels. A strong management team has relationships with:

  • Clients
  • Suppliers
  • Strategic Partners

Building a strong management team that can help the business remain successful, especially during the first few years after the sale, can help continuity of business. 

2. Transparent Financials

Buyers want to know the “numbers.” The financials of a business tell a story of growth, sales history, seasonal fluctuations and more. Buyers will want to know that the business will be able to recuperate the investment and turn a profit.

Accountants and bookkeepers will be able to assist with forecasting future sales, digging into past sales and painting a clear picture of how soon the owners can expect to make a profit from their investment.

3. Growth and Transition Plan

A business’s sales, products and services may be fruitful today, but what about in the future? Businesses have a plan for growth for the coming year and often for several years in the future. The acquiring owner will want to know the company’s plans for growth before the purchase.

Does the business have:

  • Strategies in place to continue growing?
  • Plans to venture into new markets?
  • A filled sales pipeline or long-term contracts?
  • Milestones and metrics that are outlined to reach a certain level of growth?

4. Legal Considerations

Every sale is different and comes with its own set of legal complexities. A top-notch legal team needs to be assembled to help prepare for legal issues and overcome any unforeseen problems that may arise.

There may be concerns with:

  • Risk and liability for the seller after closing;
  • Tax implications of the transaction;
  • Protecting current employees and helping to ensure continued employment with the new owner

There are a lot of legal considerations when acquiring a business, a strong legal team can help navigate and resolve those legal issues. At our Atlanta business law firm, we work closely with buyers or sellers to address legal issues and concerns in advance before they’re able to slow or derail a sale.

5. Build the Habit of Communication

A business owner’s advisor team needs to work closely together and make it a habit to put communication first. You're becoming an “orchestrator” of the seller’s “Dream Team,” and what does every team have an abundance of?

  • Personalities
  • Egos
  • Skill sets

There's a lot at play with any team, and if you don’t make communication a fundamental habit, problems will arise. As the orchestrator, you have to keep communication going between all members of the advisor team.

As an advisor, building a strong team to help the sale of the business go smoothly is your duty. The five elements above can make the sale as pain-free and streamlined as possible.

Want more information on outside general counsel?

The attorneys at Cohen Pollock Merlin Turner are happy to help. Contact us for more information.