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Everybody Needs a Business Friend: 4 Finance-Related Moves You Shouldn’t Do By Yourself

As a business owner, you know the ins and outs of the company – from its humble beginning to the obstacles to its current state. As such, you’re the most qualified to make big decisions. However, it won’t hurt you to get another set of eyes to help you weigh your options, come up with better solutions, and negotiate deals. These “other set of eyes” are called financial consultants.

Financial consultants are professionals who help you assess your finances and investments, assisting you in making money-related decisions while helping you achieve your business goals.

Here are big business-related decisions for which you need the help and expertise of a financial consultant.

Selling Your Business

There are many reasons business owners sell their businesses, according to a team of business brokers who sell companies in Park City, UT. It can be because of financial gain, relocation, or retirement. For whatever reason, you can sell your business for the highest value if you work with a business broker. They employ marketing strategies that put your business in a good light and negotiate with possible buyers on your behalf.

Typically, business brokers have connections with venture capitalists and investors. Your consultant deals with the complexities of selling a business, such as taxes and other legal matters.

Buying a Business

Business negotiation

Similar to selling a business, buying one means you need to have a team of legal and finance experts. These include an attorney who will review every contract, an accountant who will assess your books and a business broker who will look for the best purchase based on market health and your money.

When purchasing a company, business brokers investigate the target company: its performance, its competition, and financial position. These experts also help you negotiate the terms, assess possible hidden charges, understand the seller’s motives, and document everything. They are also responsible for the paperwork involved, like the bill of sale, security agreement, and purchase agreement.

Like-kind Property Exchange

Thinking of selling your property for a new one? There’s a tax-free solution for that: the 1031 exchange. However, the process might be complicated. For this, you will need the help of a qualified intermediary (QI), a neutral third party between you and the owner of the replacement property. The QI cannot be your accountant, broker, attorney, or real estate agent.

QIs help you look for a like-kind replacement property within 45 days until the property acquisition within the 180-day window. They also make sure that the entire exchange is within the guidelines of the Internal Revenue Service. Otherwise, the process is disqualified.

Initial Public Offering (IPO)

When you’re considering opening a part of your company for public ownership, you need the assistance of a team of experts, including accountants, underwriters, lawyers, Securities and Exchange Commission experts, and especially an IPO advisor.

When you hire an IPO advisor, they will assess the stock market climate. They will evaluate whether your company is ready to trade in the stock market. They also analyze existing listings, stock price history of your competitors, and determine which shares and price range you should offer.

The IPO advisor, as well as the rest of your team, is important for transparency because when you enter the stock market, you’re entering a public zone.

Even in the business world, two minds are better than one. The critical thing is the second mind should be a wise, expert financial consultant who knows how to negotiate the labyrinth of the industry. To that end, when you’re moving forward to your next big business venture, you should consult an expert first. Doing so lets you explore other options or have someone carry out important jobs for you.