It is fairly common for business owners to grow their firms and then sell them. Some want to retire, but many choose this option as a profitable path which they repeat more than once. Unfortunately, it can be difficult for sellers to attract qualified buyers. As a result, a company can languish on the market for months without expert selling advice. With that in mind, it is fairly common for an owner who is selling a business to work closely with a merger and acquisition advisory firm that offers advice, marketing help and negotiation services.
What an M&A Advisory Company Does
Essentially a merger and acquisition advisory firm (M&A advisory firm) expertly matches businesses for sale with potential buyers. The process includes a variety of services which include business valuation and the creation of a confidential memorandum. Advisers identify and dialogue with prospective buyers. M&A advisory professionals generally specialize in transactions that exceed $50 million, although they do work with smaller companies in certain circumstances.
Professionals Guide Sellers Through Transactions
Company owners who are selling typically hire mergers and acquisition advisers to help them navigate unfamiliar business areas. Owners typically have vast experience in their fields, but most have little or no knowledge of the steps involved in selling companies. For example, sellers may have no idea how to best position their companies to get the best price. Advisers have years of experience working with many industries and can help market companies to the most suitable buyers.
Advisers Advocate for Business Owners
Mergers and acquisition specialists help clients get the best value for their companies by negotiating with interested buyers. Advisers are often able to market firms to several buyers, which helps ensure that sellers are not left in precarious positions if their only offers fall through. Professionals also have the tough negotiating skills needed to get the best terms. They represent sellers’ interests and can often orchestrate terms that allow their clients all the time they need to make profitable decisions.
Even the most experienced business owners often need expert help when they decide to sell their companies. Many turn to mergers and acquisition advisory firms for help. These specialists can help clients position their companies for sale, attract buyers and negotiate to get the best price.