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WHY INTERMEDIARIES ARE KEY TO A SUCCESSFUL BUSINESS SALE

Updated: Mar 12


When it comes to buying and selling a business, there are a handful of things one will want access to during the process. One of the most important on the list is having the right intermediary working on the deal. Why would one want to use an intermediary instead of simply handling the transaction themselves? According to Jared Ribley, “The right intermediary will be able to guide the whole process seamlessly and keep all parties comfortable.” Ribley also believes using a business intermediary can help expedite the business sale process in a professional manner and that selling a business is more complex than selling real estate. “There are far more nuances to consider” according to Ribley. A seasoned intermediary has been involved in several business acquisition deals, and their expertise comes from repetition. So why use an intermediary?


There are plenty of things a business seller/buyer may end up overlooking, which can create heavy problems down the road. Some of the main issues a seller/buyer may come across when not using an intermediary are lack of confidentiality, legal navigation, and accurate valuation expectations. When it comes to selling a business, confidentiality is important. Keeping the sale confidential helps the business operate without unexpected issues that may arise from word getting out about the company being for sale. Some of the larger issues that may arise due to lack of confidentiality can be employee unrest and lack of confidence from current and future customers, which can lead to the loss of a sale. Legal navigation is another big reason why one will want to use an intermediary for the sale of their business. Intermediaries understand what is and isn’t legal during a transaction and can not only keep one out of trouble but also help get the best deal possible. Accurate valuation expectations and successful negotiations that ultimately lead to a good sale are the other two main things to consider when it comes to why one should use an intermediary.


As we can see, making attempts toward navigating through a deal by oneself can cause a lot of confusion and other issues that may result in the loss of a sale. Allowing professionals, such as the team at Capstone Mergers and Acquisitions, will help maximize a deal and give the business owner a sense of empowerment knowing they are being backed by true professionals who understand the business of selling businesses.

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