A recent study focused on use of M&A advisory services by owners when selling their companies. Asked if the advisor added value, every single respondent answered in the affirmative. In fact, almost 70 percent reported significant value was added.
If you plan to merge or possibly sell your company now or in the future, you may want to investigate the services of a mergers and acquisitions (M&A) advisor. Look for a firm that’s well-versed in negotiation, integration and due diligence. This can help ensure you are prepared for a smooth sales process that nets substantial valuation.
Here's what to know before using an M&A advisor.
1. Advisor's experience is crucial. The advisor's track record of closing deals and gaining top valuations is extremely important. Will the advisor be able to earn incremental value for your company through her or his knowledge of your industry or field, and first-hand experience with companies of your size?
2. What’s the team makeup? It is likely a team of M&A advisors will work to ensure your company sells for top dollar. It’s important to meet the team members, review their credentials and make sure you feel comfortable working with them.
3. Yearly volume a key. Make sure you learn how many transactions your advisor handles yearly. If it's too high, you may not get as much attention as you need. If it's too low, quality may be an issue. Obtain a happy medium.
Merging or selling a company can have its share of unforeseen twists and turns. The right advisor should be a skilled navigator, ensuring the smoothest possible outcome.
What do you most want to know about M & A advisors?