Last year, a local Southeast Minnesota business owner and I met at his office early on a Saturday morning. The building was completely empty, the perfect setting to have a highly confidential conversation without employees or competitors finding out prematurely.
He sat down and told me, “Jacob, I think I might have a buyer lined up. But I have no idea what my business is worth or how to get a sale through completion.”
To the outside world, having a buyer already in mind sounds like the ultimate dream scenario. But as a business broker, I know that having an interested party is just standing on one side of the river. To actually close a transaction, you have to build a sturdy bridge between the buyer and the seller.
Before you can shake hands with a known buyer, you need a map. We couldn’t start discussions without knowing the true value of his life’s work.
Drawing on my background as a CPA, we looked under the hood and “recast” his financials to show the company’s true earning power. Once we had a clear, data-driven valuation, we were able to come up with a fair asking price and a logical deal structure that protected his wealth right out of the gate.
Selling a business doesn’t have to be a chaotic or difficult process. In fact, this specific transaction went incredibly smoothly.
The secret to our success was focusing on the “bridge building” aspect of the deal. My primary role was to set up the right expectations for both sides from day one. We cleared the pathways so that sensitive information could be shared safely and any ambiguities could be addressed quickly. By being incredibly clear and consistent on the next steps and the timing of due diligence, we removed the uncertainty that normally derails deals.
Because we established a firm structure and managed expectations, we lowered the risk for both the buyer and the seller. We closed right on time in April.
The seller was ecstatic that I was there to assist and secure a fair price and structure, and the buyer was happy with the process as well and excited to get to work! Local buyers appreciate a clean, organized transaction where the timing and expectations are transparent so they can stick to where they add value most.
Even if you already have a buyer in mind, you don’t have to navigate the crossing alone. Work with a trusted guide to plan your next steps, determine your value, and move forward with confidence.