Selling a company that you have worked so hard to create, or buying an already existing business, can initially seem daunting. There are many important factors that must be taken into consideration before a deal can be made, but working with an M&A advisory firm is one way to simplify and streamline the entire transaction.

What are the benefits of using an M&A advisory firm?

It is critical for you to clearly lay out your objectives.  An M&A advisor should be able to help refine your exit strategy to align with your goals.  It is critical to have a trusted advisor that will manage the process for you, confidentially, so you can continue to deliver great business results.

You need to determine an accurate valuation for your company. This is an imperative step in the process because potential buyers are going to want supporting details on your business’ earning power. An M&A advisory firm will look at your business assets, profit margins and performance, industry trends, compatible companies, and the economy, to establish the value of your business. Not only will this give you a better understanding of your strengths and weaknesses, but it will also give you leverage during the negotiation process.

An M&A advisory firm works with both sellers and buyers. Once you have made the decision to sell your business, you want to complete the transaction as efficiently as possible. By working with an M&A advisory firm, your business will be marketed and presented to individuals and/or companies that are qualified and aligned with your search criteria. The same is true if you are interested in buying a business. You will have first access to the companies represented by the mergers and acquisitions firm.

Once you have located the right company to buy, or an ideal purchaser for your business, the negotiations will begin. An M&A advisory firm will know the questions that should be asked, the information that must be provided, and where potential negotiations can be made.  Coordinating buyer/seller meetings, confidentially navigating the due diligence process, and determining the optimal deal structure are critical processes that an Advisor will help you navigate.