Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

August 3, 2023

The CPA’s Role In Selling A Business

By Dave Patterson

Your Certified Public Accountant (CPA) can play an important role in the specialized team assembled to sell your business. An effective team also includes a qualified M&A Advisor, Certified Business Valuation Firm, Transaction Attorney and Lender. While the specific responsibilities of your CPA may vary depending on your unique circumstances and the scope of engagement, these contributions are required during the business sale process:

1. Financial Analysis and Seller Due Diligence: Your CPA can provide a thorough financial analysis of your business, including reviewing financial statements, examining financial records, tax compliance, contracts, liabilities, and other relevant financial information. They can help you understand the financial health of your business and identify potential issues or concerns and allow you to address them proactively.

2. Financial Documentation: Throughout the sales process, there are various financial documents to prepare and review, such as profit and loss statements, balance sheets, income statements, cash flow statements, and financial projections. Your CPA can help compile and review these documents to ensure accuracy and consistency and present the financial information in a clear and compelling manner to potential buyers.

3. Valuation Assistance: Your CPA will work closely with business valuation experts to determine the fair market value of your business. They can provide critical financial data and insights to support the valuation process, ensuring that the asking price is reasonable and based on accurate financial information.

4. Financial Planning and Tax Optimization: Selling a business often has significant tax implications. Your CPA can help develop a tax strategy to optimize the financial outcome of the sale. They can analyze various tax scenarios, advise on structuring the transaction to minimize tax liabilities, and provide guidance on potential tax incentives or exemptions available that may apply to your situation.

5. Exit Planning: Your CPA can assist in developing an exit strategy that aligns with your long-term financial goals. They can help you evaluate the financial implications of different exit options, such as an outright sale, merger, acquisition, or succession plan.

6. Buyer Due Diligence Preparation: When selling a business, potential buyers typically conduct due diligence to assess the company’s financial and operational aspects. Your CPA can assist in preparing the necessary financial documents, records, and disclosures required for due diligence. They can ensure that the financial information provided is accurate, complete, and presented in a way that facilitates a smooth due diligence process.

7. Deal Structuring and Negotiations: Your CPA can collaborate with other members of your sales team, such as attorneys or business brokers, to help structure the deal. They can provide financial insights on various deal structures, such as asset sales or stock sales, and analyze the potential financial impact of different negotiation points. Your CPA’s input can be valuable in ensuring that the financial terms align with your goals and interests.

8. Post-Sale Transition and Tax Compliance: After the sale, your CPA can guide you through the financial transition, ensuring a smooth handover of financial records and helping you comply with any tax obligations resulting from the transaction.

Remember, the specific role your CPA plays in the team assembled to sell your business will depend on your preferences, the complexity of the transaction, and the expertise of your CPA. It’s essential to communicate your expectations clearly and involve your CPA from the early stages of the sales process to maximize their contribution.

About A Neumann & Associates, LLC

A Neumann & Associates, LLC is a professional mergers & acquisitions and business brokerage firm having assisted business owners and buyers in the business valuation and business transfer process through its affiliations for the past 30 years. With an A+ Better Business Bureau rating, the company has senior trusted professionals with a deep knowledge based in multiple field offices along the East Coast and has performed hundreds of business valuations in its history. The firm’s competitive transaction fees are based on successfully completing transactions. For more information, please contact A Neumann & Associates at 732-872-6777 or info@neumannassociates.com

Leave a Reply

Your email address will not be published. Required fields are marked *


CAPTCHA Image
Reload Image

Any questions? Please contact us at 732-872-6777
Call Now

Client Testimonials

“I'm an attorney. I have represented the buyers and sellers of businesses for 20+ years. Recently I had the pleasure of handling a transaction where Richard Wilder of A. Neumann & Associates was the broker for the seller. Mr. Wilder was of great service to his client. He is very knowledgeable and organized. Thanks to his guidance the transaction proceeded smoothly and closed on time. He is highly recommended.”

Nick Ferrante

“Richard, you came to my office a few years ago and were wonderful in explaining your process and procedures. Our company is probably an anomaly in that we sold the majority to two long time employees and I financed them both. Our company is entering its 45th year and is still thriving. The purpose of the note is to thank you very much for the service that you provide. Thank you again.”

John Foug, Seller

“We had a great experience working with Richard Wilder from Neumann and Associates as the sell-side broker for Blade Runners. He was knowledgeable, professional, and clearly had his client’s best interests at heart. Richard helped keep the process smooth for everyone, and thanks in part to his efforts, we found a fantastic owner to partner with. We'd gladly work with Richard and the Neumann and Associates team again.”

Justin Martin

“Very happy with Richard and the entire process. I was on the buyer side of the transaction.”

Isaac Palmer, Jr.

“If you are looking for a professional and informative company that meets your needs, A Neumann & Associates is the company to go with. Ted Kantor went above and beyond to make our experience as easy as possible. Ted was helpful from the start of our process to the end. He was there every step of the way to guide us and answer all of our questions. He handled all of the in-depth communication and followed up on every detail. We strongly recommend Ted Kantor to help you whether you're buying or selling. It was a great experience. We never imagined it would go as smooth as it did. The Laluna's (Andy, Maria & Tony Jr)”

Maria Laluna

“A Pleasure to work with - I highly recommend them! Working with Richard Wilder was a pleasure, and he found us the perfect match.”

Laura Keith-Macario

“This spring we acquired a business that was represented by Richard Wilder at A Neumann & Associates. Small business acquisitions can be very emotional for the sellers and life-changing for the buyers, and Richard was keenly aware of this throughout the process. Although he was working for the sellers and not for us, he knew that most business owners see their business as their baby so the only way to have a happy outcome for his clients was to also have a happy outcome for the buyers. Knowing how nerve-wracking this process can be (think home buying x 10), he never dropped the ball on keeping everyone updated, anticipating potential snags, and guiding us along in the process. We highly recommend Richard.”

Shannon, Buyer

“My business was my baby for over 40 years. It is a tough and cruel world out there when it comes to selling your business. Neuman and Associates provided the professional guidance/protection to get the job done with care and no pressure. In my view a tremendous value. I would recommend them to anyone seeking to sell their business. Eric Storck, president of Blade Runners Inc.”

Eric Storck, President - Blade Runners Inc.

“I’m really impressed with how your firm operates. The focus on confidentiality, the thorough vetting process, and the use of third-party accredited valuations really stand out. It’s easy to see why you’ve built such a strong reputation over the years.”

Ann M., Investor

“Thanks for sending over such a detailed CIM.  While I have only reviewed a have dozen CIMs at this point, your company has put together the most comprehensive data and detailed presentation I have seen so far.”

Ben N., Investor
view all testimonials

Contact A Neumann & Associates, LLC

If you are considering selling your business, please contact us to learn more about our comprehensive service spectrum. Our experienced professionals will answer all your questions about selling a privately held business in complete confidentiality. Please fill out our contact form, or call us at 732-872-6777. We will contact you directly and will never identify ourselves to your employees.

call us now
Contact Us for a Free, Confidential Consultation

Experienced M&A Advisors available

Full Name
Email Address
Phone Number
Message