If you are considering selling your company, you have several options for pursuing the sale, and you have quite a few decisions to make. And this is a journey you do not want to take lightly. You’ve worked so hard to build your business. When you sell it, you want everything right to get the value you deserve. In addition to extracting value, you want the process to be as painless as possible. These are the reasons you should consider having the representation of a reputable mergers and acquisitions firm. Partnering with the right M&A advisor can significantly affect your sale price.
Having a specialized professional partner handle the sale or merger of your most important asset is a critical decision. That is why you should know what to look for in an M&A partner.
The Right Size
Working with big investment banks to sell your company may sound reputable, but you usually pay for that esteem by paying steep costs and fees. For companies in the lower to middle market, business owners should look for an M&A firm that is an appropriate size for handling a deal. Small firms can be very pricey while making you feel neglected or a low priority at the same time. Too small of a firm can sometimes mean a lack of resources that causes you to leave money on the table. You want to look for an M&A advisor with experience with businesses of your size and in your sector, who offers personalized service, gives you detailed intelligence, and can back up its reputation with testimonials from previous clients.
Additionally, when you work with an M&A firm, you should expect a dedicated team of transaction experts specializing in different parts of the process. And you should feel that they are there for you every step of the way. Selling a business takes time, so you will want to feel comfortable and content working with them for a lengthy and stressful process.
The Right Resources
Your M&A deal team should have access to the right resources to get you the best deal possible. This includes access to current market data in different sectors, proprietary systems and databases, and marketing prowess. Having a representative that can give you a significant competitive edge in a transaction. You should expect to get real-time insights and market intelligence regarding how buyers perceive your business and how it compares to similar entities in the market. A good M&A partner can also offer you growth strategies to improve your company valuation.
Throughout the arduous M&A process, a good advisor will give you an in-depth understanding of your company based on constructive insights through detailed documentation. You should expect to be updated constantly. A good M&A team will always keep you in the loop. You shouldn’t have to ask for updates, but you should also feel comfortable requesting information and getting a prompt response.
The Right Motivations
Look for an M&A partner that understands what it’s like to be in the shoes of a business owner. It would help if you felt that they were invested in the long-term success of your company and the transaction, regardless of how long the process takes. They should also help you decide what type of sale is right for you.
Sometimes, a business owner will enter into acquisition talks with a possible buyer only to realize that a customer-vendor relationship may be a better solution than a sale. In this situation, your M&A advisor should work for what is best for your company instead of talking you into a deal so that they get a commission.
Another thing to look for in a good M&A advisor is honesty. There may be a better time to sell your company, and they should be able to tell you this. If they genuinely care, they will work with you to create an exit strategy that is timed appropriately. And, in a world where things can change in an instant, flexibility is vital. Being adaptable will keep your company market-ready so you can take advantage of the best time to sell. And if you decide you are not ready to sell, your M&A team should be able to guide you in creating value through specific growth strategies.
Europe: Michael Lawrie at +44 (0) 161 359 4400 / Lawrie@BenchmarkIntl.com
Americas: Sam Smoot at +1 (813) 898 2350 / Smoot@BenchmarkIntl.com
Africa: Anthony McCardle at +27 21 300 2055 / McCardle@BenchmarkIntl.com
ABOUT BENCHMARK INTERNATIONAL:
Benchmark International is a global M&A firm that provides business owners with creative, value-maximizing solutions for growing and exiting their businesses. Benchmark International has handled over $10 billion in transaction value across various industries from offices across the world. With decades of M&A experience, Benchmark International’s transaction teams have assisted business owners with achieving their objectives and ensuring the continued growth of their businesses. The firm has also been named the Investment Banking Firm of the Year by The M&A Advisor and the Global M&A Network as well as the #1 Sell-side Exclusive M&A Advisor in the World by Pitchbook’s Global League Tables.