When selling a company there are many steps to go over before the process is complete. An M&A intermediary is extremely beneficial in the sale. Often times, small companies overlook the importance of an M&A intermediary and try to sell the business on their own. This can lead to small details that turn into big mistakes.

This article goes into depth on just a few of the common mistakes that companies make when selling a business on their own.

Welcome to the fourth and final part of the How to Finance a Business series! This series explores different ways to get the financing for your business, regardless if you’re financing your own startup or buying a business already on the market. For the final topic in our series, we’re looking at one of the most non-traditional way of buying a business. This isn’t funding your dream on bank loans and credit cards, securing the sought-after SBA loan, or even selling off your personal assets. Instead it’s using your existing funds in your retirement accounts, such as a 401(k) or IRA, and rolling them over to by an existing business or start up a new one. The two methods discussed below, the BORSA and ROBS, do so without actually touching the funds, which avoids certain fees and taxes.

The M&A process requires the creation of a number of important documents, including the Letter of Intent, purchase agreement, and non-disclosure agreement. The primary agreement document determines the fee structure for the advisor as well as their duties to their client. The intermediary and the seller to discuss objectives for selling the business and lay the groundwork for the process. The following outlines the most important sections of the engagement letter and what may be expected from them.