Selling Your Business – Who Do You Need on Your Team: Part 3 – Certified Public Accountant

Transaction Talk welcomes you to the third episode of a four-part series that details what business owners need to know about selling their businesses. Your hosts Jennifer and Eric interview Scott Sagan, a CPA with over 30 years of experience in accounting, auditing, taxation, and more. Scott shares from a CPA perspective how business owners can maximize their company's value and also make sure that their numbers are realistic to a potential buyer.

Key Points

[2:00] What does a typical conversation look like with a CPA and a business owner looking to sell his/her business?

[3:55] Every business owner wants to maximize their value, but it's important to be realistic with that expectation.

[5:05] How does Scott work with business owners and prepare them properly for a sale?

[7:25] What other people should be on a business owner's team when they're looking to sell?

[9:25] What role does a CPA play during the sale of a business?

[11:55] It's important to have a seasoned advisor who is used to these types of transactions.

[15:10] What types of documents does a CPA need to properly do their due diligence?

[18:00] What happens if there are two CPAs on the team and they disagree with the numbers/projections?

[18:45] Scott explains what a cash-free/debt-free purchase is.

[21:55] What are some of the benefits of a stock sale vs. an asset sale?

[23:25] What types of taxes should you be thinking about when you're getting ready to sell a business?

[27:05] Are different types of assets taxed differently?

[27:55] What should you look for in a CPA?

[31:00] Scott shares some examples of how he's helped clients in the past with the sale of their businesses.

Tip of the Day:

Make sure you use seasoned professionals. Don't get caught up in the cost of these professionals because, in the long run, they will save you more than the cost.

Mentioned in this Episode

Tworld.com/locations/boston

Riw.com

Transactiontalk.com

Scott Sagan

Website

LinkedIn

Phone: 781-569-4732

Email: ssagan@lga.cpa

Disclaimer:

The material on this site may be considered advertising under the rules of the Supreme Judicial Court of Massachusetts. This site is solely for informational purposes and provides general information only. Nothing on this site should be construed as legal advice or consultation either generally or in a particular case. Neither the receipt nor the distribution of materials constitutes the formation of an attorney-client relationship.

Quotes

"Nobody wants to see their life's work fail. They want to sell their business to someone who will succeed and take it to the next level."

"I can't stress enough the importance of getting a good team in place to really hash these things out prior to making a final agreement."

"The last thing you want to do is sell the business and 15 months after a transaction, you have a huge tax bill that you had no idea that it'll be that much."