Understanding How A Transaction M&A Intermediary Can Help You Navigate the Process of Selling Your Business.
How do you proceed when selling a business in the face of a lot of uncertainty and risk?
You really only have three options:
- fly blind;
- fly solo (but try to become an expert during the process); or
- hire an M&A Intermediary to serve as your navigator.
What are the roles of the M&A Intermediary?
Since selling a business is often an emotional, complex and time consuming task for the business owner, an M&A Intermediary will act on behalf of the owner and will establish a strong negotiating position without compromising the goodwill and relationship between the principal parties. The M&A Intermediary will also increase the opportunity to receive the best price for the business.
What are some common questions to ask your M&A Intermediary?
Here are some common questions to help you as you engage your M&A Intermediary that may help you in the sale of your business.
What aspects of my business add to and detract from ultimate valuation potential?
How will prospective buyers negotiate against me?
What is the current market value of my business?
Are my business valuation expectations reasonable?
How do various forms of deal structure impact the valuation of my business?
Is my business and strategic plan best suited for a strategic buyer, a financial buyer, or a hybrid?
How can the marketplace of specific buyers (strategic and financial) for my business be identified?
How can I access a broad, competitive marketplace of buyers without compromising confidentiality?
What information should I provide to prospective buyers, how should I provide it, and when?
Should I have a pre-determined asking price for my business or let the market determine the ultimate value?
At what point in the process should I invite prospective buyers to visit the business?
At what point in the process should I involve the management team and staff?
How many offers should I expect to receive?
What is the best way to negotiate offers with prospective buyers?
If answering these questions for your self seems daunting, or you feel woefully out of your league making these determinations you are likely a good candidate for an M&A Intermediary, who will help you determine the answers to these questions and then prepare you to act upon them accordingly. Have a good M&A Intermediary is like having an ally, advocate and partner through the often tumultuous period of preparing to sell and then ultimately selling your business.
What are the benefits of using an M&A Intermediary?
Focus– Your M&A Intermediary will help you through the process of selling your business by keeping the process focused.
- Experience– Having an experienced M&A Intermediary will help you better navigate uncharted waters.
- Process Management– From the beginning of the process to the end, an M&A Intermediary will help keep you on track.
- Confidentiality– You can be assured that your business stays your business until your business is sold.
- Credibility– An organized deal with an M&A Intermediary lends credibility to your sell.
- Maximize Valuation– Don’t leave anything on the table. An M&A Intermediary will help you to maximize the sell value of your business.
- Qualifying buyers– Not every prospect is a good candidate to sell to. An M&A Intermediary will help you recognize the most qualified buyers.
What does the business selling process look like?