As both a Massaxhusetts business broker and a business attorney, I sometimes find myself in an awkward position when in a room filled with other business brokers. As the telling of war stories progresses, it is only a matter of time until somebody loudly exclaims, “the attorney killed my deal!” [This being the “G” rated version.] I usually just bite my lip when I hear this in conversation.
In my experience, an attorney (or for that matter an accountant) never recommends that a deal be terminated for no reason. In most cases, the deal had been structured in a way that was disadvantageous to the client from a business or tax perspective. This happens most often when a client fails to involve his professional advisors during the planning stages of a transaction (sometimes at the urging of a broker trying to emotionally commit the principal before involving his professional advisors).
Whether you are buying or selling a business, your best chance of structuring an advantageous deal is during the planning stages. So involve your professional advisors at the earliest possible stage. Ignore contrary advice, even when it seems to come from credible sources.
Ascend Business Brokers, Massachusetts business brokers, assists owners in selling their businesses.
