Questions To Ask When Selling A Business In California

I wholeheartedly believe that California is an exceptional place to live and do business; here's why:

• Small to mid-sized businesses thrive in California, although taxes can sometimes be a nuisance. But the taxes are invested back into the state, building a better place to live and work.
• The Mediterranean climate of California is known for its mild and comfortable weather.
• California's location near Asia, Mexico, and Canada provides abundant trade opportunities, diversifying the state's economy.
• San Diego is home to some of the strongest defense forces in the country.
• Los Angeles is the epicenter of the movie industry, making it a hub of culture and entertainment.
• Silicon Valley is a mecca of innovation and technology, attracting some of the brightest minds in the world.
• The Central Valley is responsible for almost half of the agricultural products that are bought, sold, and transported across the US.
• Last but not least, California's beach communities are a major attraction, drawing in people from all over the world.

In summary, California offers a unique combination of opportunities and experiences that make it an incredible place to work, do business, and live.

Are you a business owner looking to sell your business but don't know where to start? Let me guide you through the process. 

First, we'll conduct a comprehensive business valuation to determine the true worth of your business. This will provide us with a solid foundation to build upon and ensure that we get the best possible price for your business. 

Next, we'll take your business to market by creating a marketing plan that will attract potential buyers and generate interest. Once we've found the right buyer, we'll negotiate a deal that works for you and ensures a successful sale. 

By following these two primary steps, you'll be well on your way to selling your business quickly and efficiently. 

Let's get started today and find out if you are ready to move forward with exiting your business. Or, see case studies to learn more. 

A business valuation is a vital starting point for any business owner looking to sell their venture. Many businesses fail to sell, and for good reason; not all owners are familiar with the selling process, which can be complex and overwhelming. That's where I come in. As a business valuation expert, I can help you explain how your business is valued, and what buyers are looking for. 

But that's not all. By conducting a business valuation, I can also help you identify potential challenges that buyers may inquire about. I can examine your works in progress, inventory, high capital costs, and cash that do not appear on financial statements to determine how they may affect the sale of your business. I can even help you check the quality of your financial statements to ensure that you're presenting the most accurate financial picture of your business.

Furthermore, conducting a business valuation can help you understand how buyers evaluate a business and what they're looking for. Many business owners believe that gross revenue is all-important, but that's not necessarily the case. For example, a business that generates $10 million in gross revenue but costs $12 million to run is not a lucrative prospect for a buyer. That's why I focus on helping you understand the importance of cash flow or SDE, and how to make sure it's accurately known.

Conducting a business valuation also provides you with an opportunity to ask questions. I understand that selling a business can be daunting, and that's why I'm here to help you navigate the process with ease. Whether you're a seasoned business owner or new to the game, I'm here to answer any questions you may have and provide you with the information and guidance you need to sell your business successfully.

Finally, let's not forget about the importance of lenders. Most buyers rely on loans to purchase a business, so it's crucial that your business is attractive to lenders. By conducting a business valuation, I can help you identify the strengths of your business and ensure that it's a viable prospect for lenders. 

So, if you're thinking about selling your business, don't go it alone. Let me help you get the most out of your venture and ensure a successful sale.

Just fill out the simple form on this page and I'll get back to you in 24 hours.  Or call toll-free and leave a message at (844) 414-9600

Step-by-Step Guide to Using the Formula for Valuation

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)

EBITDA is a measure of a company's profitability that takes into account its earnings before interest, taxes, depreciation, and amortization. This metric is important because it gives you an idea of how much money your lower middle market business is making before these expenses are taken into account. To calculate EBITDA, you'll need to add up your business's earnings before interest and taxes, and then add back any depreciation and amortization expenses.

The mathematical formula to calculate EBITDA:

EBITDA = Earnings Before Interest and Taxes (EBIT) + Depreciation + Amortization

Where:

EBIT refers to the earnings generated by a company before deducting interest expenses and taxes.

Depreciation represents the systematic allocation of the cost of tangible assets over their useful lives.

Amortization refers to the gradual reduction of the value of intangible assets over time.

By summing up EBIT, depreciation, and amortization, we arrive at EBITDA, which provides a measure of a company's profitability before considering interest, taxes, depreciation, and amortization expenses. This metric is particularly useful when evaluating the operational performance of a lower-middle-market business.

Read more about the three scenarios below…

Let's now do some calculations for EBITDA in three different business scenarios, taking into account lower middle market companies in California with yearly revenues ranging from $3 million to $20 million:

1)  Service Business

Assuming a service business with a yearly revenue of $5 million and the following financial information:

Earnings Before Interest and Taxes (EBIT) margin: 12%

Depreciation: $200,000

Amortization: $100,000

To calculate EBITDA:

EBIT = Revenue * EBIT margin

   = $5,000,000 * 0.12

   = $600,000

EBITDA = EBIT + Depreciation + Amortization

 = $600,000 + $200,000 + $100,000

  = $900,000

Therefore, the EBITDA for the service business with a yearly revenue of $5 million is $900,000.

2) Manufacturing Business

Considering a manufacturing business with a yearly revenue of $12 million and the following financial data:

Earnings Before Interest and Taxes (EBIT) margin: 10%

Depreciation: $500,000

Amortization: $150,000

Calculating EBITDA:

EBIT = Revenue * EBIT margin

 = $12,000,000 * 0.10

 = $1,200,000

EBITDA = EBIT + Depreciation + Amortization

= $1,200,000 + $500,000 + $150,000

= $1,850,000

Hence, the EBITDA for the manufacturing business with a yearly revenue of $12 million is $1,850,000.

3) Construction Business

For a construction business with a yearly revenue of $18 million and the following financial figures:

Earnings Before Interest and Taxes (EBIT) margin: 8%

Depreciation: $700,000

Amortization: $300,000

Using the formula, we can calculate EBITDA:

EBIT = Revenue * EBIT margin

= $18,000,000 * 0.08

= $1,440,000

EBITDA = EBIT + Depreciation + Amortization

 = $1,440,000 + $700,000 + $300,000

 = $2,440,000

Thus, the EBITDA for the construction business with a yearly revenue of $18 million is $2,440,000.

Please note that these calculations are based on assumed EBIT margins and financial figures within the lower middle market range. The actual EBITDA may vary depending on the specific circumstances and financial performance of each company.

The revenue formula is next. Another popular valuation formula to learn quickly. 

To calculate the worth of your lower middle market business in California, here's a step-by-step guide to using the formula for valuation:

1. Calculate your EBITDA: Start by adding up your earnings before interest and taxes, and then adding back any depreciation and amortization expenses.

2. Determine your revenue: Add up all the money your business has earned from sales over a given period.

3. Find your industry multiples: Look up the average earnings or revenue of companies in your industry to determine your industry multiples.

4. Multiply your EBITDA by the industry multiples: Multiply your EBITDA by the industry multiples to get an idea of your business's value.

Let’s put this into action. Shall we? 

We’ll be using the data from the three scenarios mentioned earlier for a service business, manufacturing business, and construction business:

1. Calculate EBITDA:

For the service business: EBITDA = $900,000 (calculated earlier)

For the manufacturing business: EBITDA = $1,850,000 (calculated earlier)

For the construction business: EBITDA = $2,440,000 (calculated earlier)

2. Determine Revenue:

For the service business: Yearly revenue is $5 million

For the manufacturing business: Yearly revenue is $12 million

For the construction business: Yearly revenue is $18 million

3. Find Industry Multiples:

Research and find the industry averages or multiples for the specific industries (service, manufacturing, and construction) within the lower middle market in California. These averages may vary over time and can be obtained from industry reports, market research, or industry associations.

To find the industry multiple averages for the manufacturing, service, and construction industries, we need to filter the data accordingly. However, the provided data does not include industry categorizations. Therefore, we can approximate the industry categories based on the industry names and make assumptions to determine which industries fall into the manufacturing, service, and construction sectors.

Based on the industry names provided (see data source), we can assign the following industries to each sector:

Manufacturing: 

Aerospace/Defense, 

Auto & Truck, 

Auto Parts, Chemical (Basic), 

Chemical (Diversified), 

Chemical (Specialty), Computers/Peripherals, 

Electrical Equipment, 

Electronics (General), 

Machinery, 

Metals & Mining, 

Oil/Gas (Production and Exploration), 

Oilfield Svcs/Equip., 

Packaging & Container, 

Paper/Forest Products, 

Power, 

Precious Metals, 

Rubber & Tires, 

 Equipment,

Semiconductor, 

Semiconductor Equip, 

Shipbuilding & Marine.

Manufacturing Industry Averages:

EV/EBITDAR&D: 8.93

EV/Revenue: 1.17

EV/EBITDA: 6.72

EV/EBIT: 9.64

Service: 

Advertising, 

Business & Consumer Services, 

Cable TV, 

Education, 

Entertainment, 

Environmental & Waste Services, 

Financial Svcs. (Non-bank & Insurance), 

Healthcare Products, 

Healthcare Support Services, 

Healthcare Information and Technology, 

Hotel/Gaming, 

Information Services, 

Insurance (General), 

Insurance (Life), 

Insurance (Prop/Cas.), 

Investments & Asset Management, 

Recreation, 

Software (Entertainment), 

Technology Services, 

Telecom (Wireless), 

Telecom, 

Computer Services, 

Transportation (Services), 

Trucking, Waste Management.

Service Industry Averages:

EV/EBITDAR&D: 10.27

EV/Revenue: 1.43

EV/EBITDA: 9.05

 EV/EBIT: 12.18

Construction: 

Building Materials, 

Construction Supplies,

Homebuilding, 

Engineering/Construction, 

Real Estate (Development), 

Real Estate (General/Diversified.

Construction Industry Averages:

EV/EBITDAR&D: 11.44

EV/Revenue: 1.09

EV/EBITDA: 9.76

EV/EBIT: 14.02

These averages are calculated based on the multiples provided in the original data and may vary depending on the specific companies within each industry. 

If you find this overwhelming, let us do the heavy lifting. Give us a call and leave a message at (844) 414-9600 and we'll get back to you in 24 hours. 

Acquiring accurate tax returns is crucial for several reasons. 

Firstly, as tax returns are typically prepared by a third party, they are skilled at reviewing the Profit and Loss (P&L) and Balance Sheet to identify inaccuracies. 

Secondly, a lender will use tax returns as an integral part of their loan underwriting process. Especially for an SBA lender, who will require the seller's permission to pull a copy of the tax returns directly from the IRS. Therefore, it is mandatory to have accurate tax returns available for the loan underwriting process. 

By providing accurate tax returns, you can increase your chances of securing a loan and ensuring a successful transaction.

See case studies of smooth quick transactions in California. 

It's crucial to determine the Seller's Discretionary Earnings (SDE) for each year for the last four to five years, as this is the primary metric that lenders look at to evaluate a small to mid-sized privately held business. 

Going back ten or fifteen years may not be meaningful, as it's essential to assess the current financial position of the business. SDE represents the earnings of the business, typically where only one owner works, and it's arrived at after adjustments are made to the financial statements. 

One of the important ratios that lenders look at is SDE/EBITDA, which stands for the ratio between SDE and Earnings Before Interest, Taxes, Depreciation, and Amortization. 

Normalizations are adjustments made to the financial statements to reflect the actual cash flow of the business. 

These adjustments must be legal and include: 

• financing costs, 
• interest, 
• depreciation, 
• one-time expenses, 
• money paid into retirement plans, 
• health insurance, 
• personal benefits, such as car payments, children's education, personal travel, payments to family members, home mortgages, and more. 

All these adjustments are added to the cash flow for debt servicing, which is a critical metric for lenders. It represents the business's ability to generate enough cash to pay off existing debt obligations. Lenders want to ensure that the business generates enough cash to support its operations and pay off its debt obligations.  It is critical to get buyers' interest in your business.

Therefore, it's crucial to ensure that the financial statements accurately reflect the business's financial position. As long as the numbers are accurate, you can be confident that the lenders will evaluate your business's financial position positively.

Ready to start the valuation process and figure out the best market price for your business? Call me toll-free at (844) 414-9600 and leave a message. I'll get back to you in 24 hours. 

It is crucial to evaluate the rent listed on the P&L and tax return to determine if it is based on market rates. 

This can have a significant impact on the business value. A rent above market rates could artificially inflate the value, while a rent below market rates could undervalue the business. Therefore, it is essential to assess the market rates to ensure an accurate reflection of the business value.

Furthermore, it is wise to explore the availability of the real estate for purchase and the seller's asking price. Knowing the market value of the property can help determine if purchasing it alongside the business is a viable option. Evaluating compliance with building codes, environmental regulations, and other requirements is also crucial to avoid legal issues. 

Lastly, purchasing both the business and the real estate has several advantages, such as greater control over the property and easier access to financing. Understanding the motivation behind this approach can help make a well-informed decision. Therefore, it is important to take a comprehensive and detailed approach to evaluating the business and its associated real estate.

Are you considering selling your business with the real estate and need some guidance on what to do next? I'm just one call away at (844) 414-9600  - leave me a message and I'll get back to you in 24 hours. 

Customer concentration is a critical risk factor that can significantly impact the success of any business. Companies operating in highly specialized and competitive industries, with high capital costs and high employee turnover rates, are particularly vulnerable to this risk. To ensure the longevity and profitability of your business, you must take proactive steps to mitigate these risks. 

See how we helped a moving and storage business with this problem.

When a company has customer concentration, it means that its revenue is heavily reliant on a small number of customers. This creates a dangerous dependency on those customers and makes the business vulnerable to market fluctuations, unexpected changes in demand, or the loss of one or more key customers. This can be especially problematic for businesses with high capital costs, as they may not have the financial flexibility to adapt to sudden changes in demand.

Additionally, key employees with too much control, who may leave or retire, can negatively impact the business's success. This is especially true for highly specialized industries, where finding a replacement with the same level of knowledge and experience can be challenging.

To mitigate the risks associated with customer concentration, you must develop strategies to diversify your customer base. This involves expanding into new markets or offering new products or services. It is important to note that this is a long-term commitment that requires careful planning and execution.

Finally, taking over a business with customer concentration can be challenging due to the long learning curve required to understand the unique requirements and operations of the business. However, a plan for a smooth transition of ownership is essential to ensure the continued success of the business.

Lastly, businesses that operate in highly specialized and competitive industries, with high capital costs, high employee turnover rates, and key employees with too much control, must take proactive steps to mitigate the risks associated with customer concentration. Diversifying your customer base, planning for the long term, and being prepared for a smooth transition of ownership will help ensure your business's profitability and longevity.

We are the perfect match to help you get your business in ship shape ready for a smooth exit. Send us an inquiry or call us toll-free at (844) 414-9600  and leave us a message. We'll get back to you in 24 hours.  

Marketing The M&A Deal

Getting Ready!

This step includes making the necessary preparations to allow the M&A process to run smoothly.

• Prepare non-disclosure agreements
• Create a confidential information memorandum (CIM)
• Organize finances
• Create projections of income to show potential buyers

Round 1

4-6 weeks.

The first round is where the M&A process begins in earnest. Several steps should be accomplished during this time.

Non-disclosure agreements exchanged

CIM distributed to potential buyers

Receive initial bids

It’s vital to note that while initial bids are non-binding, they can gauge a potential buyer’s interest.

Round 2

4-6 weeks.

Round 2 is when the seller will meet with interested buyers. Several things should occur during this time.

Hold meetings with interested buyers

Draft a definitive agreement

Prepare a data room to facilitate due diligence

Receive final bids from the buyers

Negotiations

4-6 weeks.

Negotiation is the final portion of the M&A process and the last step in selling a company. During this time, there are things to be finalized. 

Send the definitive agreement to buyers

Enter an exclusivity agreement with a single buyer

Present the buyer's terms to the board

Receive board approval

Sign the definitive agreement

Once the definitive agreement is signed, the M&A process is complete. 

Get Started: Learn How Andrew Rogerson Market and Attract Qualified Buyers to Your Business For Sale Listing - send me your question by using the form on this page and I'll get back to you in 24 hours. Or, you can call me at (844) 414-9600 and leave a message. I'll see to it in 24 hours. 

If you're considering buying or selling a business, it's important to have a trusted advisor on your side to guide you through the transaction process. That's where a business broker or intermediary comes in. They bring a wealth of knowledge and expertise to the table and can help ensure that the transaction is conducted with the highest level of integrity.

My role as a  broker or intermediary is to act as a neutral party, with no vested interest in favoring one party over the other. I work tirelessly to ensure that both the buyer and seller have all the information I need to make informed decisions and that the transaction is conducted fairly and transparently.

Throughout the transaction process, the broker or intermediary takes on a variety of tasks, from helping the seller prepare the business for sale to assisting the buyer with due diligence. I also act as a mediator, helping to resolve any issues that arise during the transaction process.

Ultimately, the success of a transaction depends on the ability of the broker or intermediary to bring the buyer and seller together and facilitate a meeting of the minds. This requires a deep understanding of the transaction process, excellent communication skills, and a commitment to integrity.

At the end of the day, a business broker or intermediary can be an invaluable resource when it comes to buying or selling a business. I act as a trusted advisor, providing guidance and support throughout the transaction process. To ensure that your transaction is conducted with the highest level of integrity, it's highly recommended that you seek the services of a reputable broker or intermediary. 

Learn more with these case studies. 

Would you like a discovery call to see if we are a good fit? Call toll-free at (844) 414-9600  - leave me a message and I'll get back to you in 24 hours. 

Successfully closing the sale of a business is a complex process that requires careful attention to several key factors. 

• Over-negotiating, 
• delays, 
• and incomplete disclosure of relevant information 

are common pitfalls that can derail the negotiation process. However, by being proactive and taking a confident and collaborative approach, parties can increase the likelihood of a successful outcome.

First and foremost, parties must avoid the temptation to over-negotiate. This can happen due to a lack of trust or misunderstandings, leading to a breakdown in communication and ultimately, failure to close the deal. By being confident in their positions and maintaining open lines of communication, parties can work towards a mutually beneficial agreement that meets both parties' needs.

In addition, parties must be mindful of the time it takes to close the deal. Delays can result in missed opportunities or changes in the market that can impact the value of the business. By being confident in their abilities to negotiate effectively and efficiently, parties can avoid unnecessary delays and ensure that the negotiation process moves forward at the right pace.

Finally, parties must be confident in their ability to provide complete and accurate information during the negotiation process. This includes disclosing any potential obstacles or liabilities that may impact the sale. By being forthright and transparent, parties can build trust and increase the chances of a successful outcome.

By taking a confident and collaborative approach, parties can successfully close the sale of a business while avoiding common pitfalls that can derail the process.

Do you have further questions at this point? I'm just one call away at (844) 414-9600 - leave me a message and I'll get back to you in 24 hours. 

• When you want to do something else.
• Almost without exception – an owner decides it's time to sell but they should have started the process 12 to 18 months earlier.
• When the motivations are not where they used to be – the business will drift and go down in value.

If you're a California business owner in the lower middle market business segment within a few years of retirement, it's important to consider whether or not you're willing to wait for the next economic growth cycle to attempt an exit event. Waiting may mean waiting until around 2028 before seeing valuations as strong as they have recently been. 

Rogerson Business Services recommends evaluating the market in early 2023 for a potential business sale/exit. Interest rates are expected to continue rising, and a recession could be on the horizon. Selling your lower middle market business now might be ideal for an owner looking to take chips off the table before a potential longer-term slowdown. 

At the end of the day, the sale of a business only occurs when there is a motivated buyer and a motivated seller with all details fully disclosed to both parties. 

The fundamentals remain, and the goal is to assist you in positioning your business to capture the highest return on your investment – either through continued value creation or planning to maximize the value of your business when your timing is right for a sale. In order to make this a reality, choose an experienced, trusted advisor like Andrew Rogerson who will help you navigate the complexities of the business valuation, highlight your business value in a compelling marketing package, identify and qualify buyer prospects, and assemble a professional deal team that will deliver a successful closing that delivers on your exit goals.

Moving Ahead

SEE CASE STUDIES OF SUCCESSFULLY SOLD BUSINESSES IN CALIFORNIA - Go To CASE STUDIES

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Selling a business can be a challenging and complex process, but with the right approach, it can be a highly rewarding experience. It is essential to note that the time it takes to sell a business can differ significantly based on various factors such as the business's type, market conditions, industry trends, and the complexity of the business.

Based on my experience, the average time to sell a business is around 8 months. However, this timeline is flexible and can vary depending on different circumstances. For instance, I recently sold four businesses, and their selling timelines were diverse. While one took 8 months, another took 10 months, a third took 17 months, and the fourth took me 20 months due to customer concentration. 

Learn more in these selling a-business case studies.

It's essential to understand that selling a business is not always a guaranteed success. Industry estimates suggest that only about 25% of businesses that are put up for sale eventually get sold. However, with the right approach and working with experienced professionals, the chances of successfully selling a business can improve significantly. Therefore, it's crucial to have a clear understanding of the process and work with experts to ensure the business is marketed effectively and the sale is completed successfully.

Contemplating on selling your business in California and time is a factor?  I'm just a phone call away and you can reach me at (844) 414-9600 and leave me a voicemail message. I'll get back to you in 24 hours. 

It is crucial to prioritize confidentiality when selling a business. Confidentiality breaches can lead to a loss of trust and ultimately jeopardize the entire deal. Therefore, it is imperative that all parties involved keep all sensitive information strictly confidential until a non-disclosure agreement (NDA) is signed.

When considering the sale of a business, it is important to understand that confidentiality is paramount. 

The seller must take great care to manage their relationships with 

• landlords, 
• employees, 
• suppliers, 
• and customers. 

If any of these parties are made aware of the potential sale, it could have negative consequences for the business. 

For example, landlords may increase rent, employees may become anxious about job security, suppliers may delay shipments or demand payment upfront, and customers may switch to competitors. 

Therefore, the seller must keep the sale plans confidential until the right time, and only disclose the information to those who need to know.

I specialize in selling businesses in California because of the stringent licensing requirements and regulations that the state enforces. My expertise in the California market and its unique business environment makes me a valuable asset to my clients.

In the medical industry, I have successfully sold businesses that specialize in general care practices, specialized medical clinics, and other healthcare-related services. For manufacturing businesses, I have a proven track record of selling companies that produce industrial products, electronics, and consumer goods. I also specialize in selling wholesale distribution businesses, particularly those in the eCommerce and construction industries.

My experience in selling professional services practices includes engineering, design, and industrial services. For the construction industry, I have a successful history of selling businesses that specialize in electrical, plumbing, and HVAC services. For the trucking industry, I have sold businesses that provide long-haul trucking and freight transportation services. Finally, for IT businesses, I have sold companies that specialize in managed IT services, cloud-based services, and managed service providers.

With my extensive knowledge of California's business environment, I can provide valuable insights to my clients that help them navigate the complexities of selling a business. Whether you are looking to sell a business in the medical industry, manufacturing, wholesale distribution, professional services, construction, trucking, or IT, I have the expertise to guide you through the process.

Give me a call at (844) 414-9600 leave a message and I'll get back to you within 24 hours. 

California is one of the many states that follow the escrow system when it comes to selling a business. Under this system, an independent third party, known as an escrow company, holds the money involved in the transaction until all parties have agreed to disperse it.

Escrow companies in California are subject to strict regulations and have clear limitations on what they can and cannot do. They are primarily responsible for holding the funds and monitoring the transaction process to ensure that it is completed smoothly and securely. They can only release the funds once all parties involved have agreed to the terms and conditions of the transaction.

It is important to note that escrow companies are not authorized to mediate disputes between the parties involved in the transaction. This responsibility lies solely with the court. Therefore, all parties must ensure that the terms and conditions of the transaction are clearly defined and agreed upon before it is completed.

Have follow-up questions? I'm just a call away. Call toll-free (844) 414-9600 and leave your message. I'll get back to you in 24 hours. 

Purchasing or selling a business can be a complex and intricate process, and it's essential to have the support of an attorney who is experienced in business transactions. From the initial negotiations to the final closing, an attorney can provide invaluable guidance and assistance to ensure that the transaction proceeds smoothly and that your interests are protected.

When selecting an attorney, it's important to look for someone who has a deep understanding of the legal and regulatory requirements involved in business transactions. This may include knowledge of tax laws, employment laws, environmental regulations, and more. Additionally, the attorney should have experience working with businesses in your industry, as this can help them better understand your unique needs and challenges.

A good attorney will work closely with you to understand your goals for the transaction and provide guidance on how to achieve them. They should also be able to identify potential legal or financial risks and develop strategies to mitigate them. In some cases, this may involve negotiating with other parties to the transaction, while in other cases it may involve drafting and reviewing legal documents such as purchase agreements, leases, or employment contracts.

It's also important to ensure that the attorney's approach is aligned with your own. Some attorneys may be overly cautious and risk-averse, while others may be more aggressive in pursuing their clients' interests. You'll want to find an attorney who strikes a balance between these two approaches, someone who can help you effectively manage risk while also pursuing opportunities to maximize the value of the transaction.

Ultimately, choosing the right attorney can make all the difference in the success of your business transaction. With their support and guidance, you can navigate the legal complexities of the deal and emerge with a favorable outcome that meets your goals and objectives.

At Rogerson Business Services, we have a deal team that specializes in business sale in California. Have follow-up questions, call us at (844) 414-9600 and leave your message. We'll get to it in 24 hours. 

CPAs (Certified Public Accountants) are professionals who specialize in providing financial services to individuals, businesses, and other organizations. They are trained to help with a wide range of financial matters, including financial statement preparation, tax planning, and compliance with tax laws and regulations.

In the context of transactions, CPAs play a crucial role in ensuring that financial statements are accurate. This is important because accurate financial statements provide a clear picture of a company's financial health and help to identify potential risks and opportunities. CPAs can also assist with tasks such as Purchase Price Allocation, which involves assigning a value to the various assets and liabilities of a company during an acquisition. This helps to ensure that the purchase price is allocated fairly and accurately.

In addition to financial statement preparation and Purchase Price Allocation, CPAs also play a key role in tax planning and compliance. They can prepare tax returns, provide tax planning advice, and help to ensure that their clients comply with tax laws and regulations.

However, it's important to keep in mind that CPAs can be very risk-averse due to their obligation to the IRS and their license. This can make them more cautious than attorneys and other professionals involved in transactions. While this risk aversion can help to prevent costly mistakes, it can also be a hindrance if it leads to a CPA being overly cautious and preventing a transaction from closing.

At the end of the day, CPAs are an important part of transactions and can provide valuable financial services to businesses and individuals. It's important to find a CPA who can balance their obligations with your business needs and help you navigate the complexities of transactions.

At Rogerson Business Services, we have a deal team that specializes in business sale in California. Have follow-up questions, call us at (844) 414-9600 and leave your message. We'll get to it in 24 hours. 

Andrew Rogerson, RBS M&A Advisor, is a business owner of 35+ years, a 5-time successful business owner, Certified Mergers and acquisition Professional (CM&AP), Mergers and Acquisition Master Intermediary (M&AMI), Certified Business Intermediary (CBI), Certified Business Broker (CBB), author of 4 books, and he gives speaking presentations on request.

Andrew and the team of RBS Advisors help Lower and mid-market business owners with a business in California, plan and execute buy and sell-side mergers and acquisitions. Andrew consults with business owners on how to make their ventures stronger so they increase in value.

Choose RBS Advisors for Trust, Service and Accuracy

We help business owners exit or sell their lower middle-market company in California with a solid sell-side M&A process ready for business acquisitions and sales. RBS Advisors with a professional deal team is made up of Legal Experts, CPAs, Tax Experts, Financial Planners, M&A Advisors, and Industry Experts.