The Benefits of an M&A Adviser

You, the business owner, are a risk taker that is accustomed to getting things done on your own terms. That’s who you are. As a result, it is not out of the ordinary to think about handling all major processes regarding your company on your own.

However, in many cases, the most successful business owners achieve their goals because they know that delegating certain processes to qualified experts is imperative. It certain behooves one to rely on professionals to guide them through specialized situations.

In most instances, the sale of your company will be the largest and most important transaction of your life. There is only one opportunity to sell a company correctly, which is why it is important to maximize the process to its fullest.

Below we review some of the major aspects detailing the benefits of using an M&A Advisor to shepherd you through the process of selling your business:

1. Positioning The Company for Sales

For buyers to have an in-depth understanding of your business an M&A Advisor will develop a detailed Confidential Information Memorandum (CIM) as the primary selling document for your business. The CIM will cover everything from the history and core competencies of your business to growth opportunities and biographies of key team members. The CIM will also include a financial section that details recast EBITDA and shows financial trends dating back a number of years. This section is very important to maximizing the value of your business.

2. Compiling a Strong Buyer List

An M&A Advisor will work closely with you to understand your business and the industry sector that you operate in. They will then research the leading strategic acquirers and private equity groups that have investments, or have invested in your space, to compose a strong buyer list. They will reach out to this group of potential buyers (usually between 100 and 200) directly to gauge their interest in a possible transaction.

3. Seeking and Accepting Offers

After the initial marketing phase, which includes reaching out to potential acquirers with a blind teaser and an NDA to execute for those wishing to see the CIM, your M&A Advisor intermediary will then solicit initial indications of interest. This will provide an idea of where the buyer universe sees the value of your business. From this point your M&A Advisor will work directly with you to pare down the list of potential acquirers and grant the serious parties a management meeting.

4. Negotiations

After those management meetings are complete your M&A Advisor will solicit a Letter of Intent (LOI) from the buyers and negotiate the best terms on your behalf.

5. Due Diligence

Once terms have been agreed upon and the LOI is signed the due diligence process will kick off. It is during this phase that you can rely heavily on your M&A Advisor to help provide the needed information.

Selling your business can be a long and arduous process and it is important to have an experienced M&A Advisor guide you through the process.