How to Choose an M&A Advisor For Your Transaction

When pursuing a merger or acquisition, you’ll have a lot of decisions to make, which is why it’s helpful to work with an advisor. A merger and acquisition (M&A) advisor can help guide you through a complicated sale process, but you’ll want to make sure you find the right one. How do you choose an M&A advisor for your transaction? Keep reading to find out what to look for when browsing M&A advisory services.

5 Things to Consider When Choosing an M&A Advisor

If you’ve listed your business for sale, you’ll want to find an M&A advisor if you haven’t already. Advisors are crucial to the success of your transaction. They can help you handle various details of your deal, including business valuation, vetting potential buyers, and navigating a timely close. Here are five things to think about when trying to find the right M&A advisor.

1. Trust

First and foremost, you’ll want to ensure that the person guiding you through your sale is someone you trust. You should feel a sense of comfort and confidence in their level of trustworthiness, professionalism, and honesty.

2. Expertise

Does your advisor have vast transaction experience? A good M&A advisor will have a proven track record of successful deals and deep knowledge of all details of the M&A process. You may want to seek out client testimonials or ask your potential advisor for references to gain further insight into their experience. It’s also helpful if they have deal experience in your specific industry. An advisor with experience in your industry will better understand your market, what attracts buyers to your business, and other elements that will lead to a successful M&A transaction.

3. The Team

Business takes teamwork. M&A advisory services range in size from solo advisors to boutique firms. You’ll want to make sure you’re familiar with the deal team and your advisor’s associates and that you’re comfortable with their level of involvement and attention.

4. Fees

While budget is always a consideration, don’t just choose the M&A advisor with the lowest fees. It’s not a good idea to sacrifice quality for price or vice versa. You’ll want to find a free structure that is balanced, transparent, and aligns your interests with those of the firm. Most M&A advisory firms charge a combination of retainer fees and success fees. Retainer fees are paid upfront, while success fees are paid after a successful transaction.

5. Commitment

Make sure the M&A team you’re considering is passionate about working with companies of your size. Some M&A firms may give more priority or be more accustomed to working with larger-scale companies in the upper market. However, many specialize in serving middle market companies and small businesses.

You can count on SBB Capital Partners to help you with your business transaction. Whether you’re an entrepreneur on the buy-side or sell-side, our advisors and business brokers can help guide you throughout the entire process. Find an office near you to get in touch with one of our experts today!