10 Reasons to Hire an M&A Advisor When You Sell Your Business

You only sell your business once. Don’t rush the process and lose value. When you undertake a sale, treat it as a professional transaction, not a DIY project. Hiring a professional advisor makes the process easier and can increase valuation. Here are 10 excellent reasons to hire an M&A advisor to help you sell your company:

1. Active buyers are knowledgeable and reasonable, with extensive experience and a dedicated team. They work hard, but their job is to advocate for themselves, not for you. Don’t rely on them to educate you about the process.
2. Every buyer is different, with its own culture and personality, and its own transaction goals. Advisors know how to appeal to each buyer type, and can help you identify the right buyer for your needs and goals.
3. An advisor manages the entire transaction, which can be an exhausting undertaking that includes analyzing financial data, screening buyers, constructing a list of potential buyers, making contact with buyers, preserving confidentiality, answering buyer questions, managing due diligence, negotiating sale price, planning for the transition, and much, much more.
4. The pro forma income statement is the key starting point to the transaction and an important value driver. Advisors work with you to develop this statement based on their knowledge of the seller and deal opportunities. Buyers will not drill as deeply looking for value.
5. Advisors advocate on your behalf, but also offer a reality check when necessary. The advisor helps frame the transaction for you so you can make sound decisions.
6. The advisor manages your expectations, drawing upon years of experience to offer advice about what to expect, how to drive value, and what your best and worst case scenarios look like. The advisor can also identify unique characteristics of your business that may be attractive to your ideal buyer.
7. The advisor offers access to a wide range of buyers, mining their personal and business networks, as well as previous clients, to find a perfect fit. No marketing strategy you devise yourself can compete with the reach and knowledge an MA advisor brings to the table.
8. The advisor creates a buffer between the seller and the buyer. They can act as a bad cop and deliver bad news, allowing you and the buyer to preserve a good working relationship. This eliminates stress, removes emotion from the transaction, and increases the likelihood that everyone is happy with the final deal.
9. The advisor is deeply involved in the M&A industry. They know what’s standard and expected, and what can be negotiated. They draw upon their extensive knowledge to educate you about the deal process. This can prevent you from making embarrassing mistakes, and help you understand the contract language that will likely govern the transaction.
10. M&A advisors lend credibility to the process, showing buyers that you’re serious about selling. They can also create a competitive bidding landscape. This encourages buyer interest, causing buyers to bid more aggressively and potentially offer more favorable deal terms.