Unlocking Your Company's Potential: The Transformative Power Of An M&A Firm

If you are considering selling your company, planning your retirement or succession plan, or seeking a growth or exit strategy, you have quite a few options. You can find a buyer and pursue a deal on your own.

But while you may be an expert in your business, that does not mean you are an expert at selling a business. Most owners are not. Or, you can enlist professional help navigating a very tedious, complicated, and drawn-out process. 

But how do you know whom to turn to for help? While your attorney, CPA, or wealth manager can be helpful along the way in getting a deal done, they are not M&A experts. The smartest thing you can do is partner with an M&A team that closes deals daily, so they have the expertise and specialized knowledge to ensure you’re getting the best deal possible and the most value in the sale price or deal terms. Having the right M&A team can make a massive difference in the results you get. You have worked hard to build a successful business and deserve to get the most out of it. 

• The right partner will help you decide the best deal based on your business or personal goals. 
• They will remain fully invested in the process, no matter how long it takes. It is worth noting that selling a company can take time—from months to years. You want someone with the focus and stamina to remain fully dedicated to closing. 
• They will empathize with what it’s like to be a business owner and how emotional the sale process can be, providing value and service beyond a transaction. 
• You should expect to gain a solid market understanding of your company based on insights offered through detailed documentation. And you should expect to hear about any updates right away. 
• If you have information you want or questions, you should be able to request it and get an immediate response. If a firm seems hesitant to share information with you, take a step back and ask if that seems right.

It would be best to look for some crucial aspects in an M&A firm because it is not a one-size-fits-all scenario.

Market Intelligence That Gives You an Edge

You want to find an M&A deal team that understands current market data across different sectors and industries. They should have proprietary systems and databases that can give you a significant advantage in finding the right buyers and other data. It is also imperative that the team has vast experience in marketing strategies when selling a company. They should know how to position their business best, so it attracts the best buyers and draws the most value. You should expect them to offer you real-time insights into how buyers perceive your business and dynamic market intelligence showing how it stacks up against similar companies in your sector. Your company valuation can change based on this information. The value drivers that appeal to quality buyers can help you adjust to the market and get what you deserve based on accurate information, not just speculation. 

Your Best Interests Should be #1

A good M&A partner will be honest with you regarding what is best for you and your business, regardless of whether it benefits them. Your best interests should not always be their best interests. For example:

• They should be upfront with you if they believe that there are better times for you to sell your company. 
• They should be willing to walk away from negotiating with a particular buyer if they feel the buyer’s intentions are not ideal for them. 
• They should tell you if they believe a vendor-customer relationship may be better than a complete acquisition. 
• They should help you time your exit plan based on what works for you and your business. 
• They should offer you a dedicated team of M&A experts specializing in different areas of the process and always be there for you.
• And even if you decide you aren’t ready to sell, your M&A team should offer growth strategies by helping you increase your company valuation over time. 

The bottom line is that your M&A partner should encourage what is best for your company instead of their commission. 

Size Matters

M&A advisory firms and investment banks come in all shapes and sizes. Remember this when deciding which partner is right for you. Working with the giant, corporate investment banks usually means you will also pay costs and fees that compare in size. More prominent is only sometimes better. You may not get the attention you deserve if you are a small fish in a big pond. For companies in the lower to middle market, you need an M&A partner that’s the right size to handle your deal. While too big of a firm can leave you feeling neglected, too small of a firm can result in missed opportunities and leaving money on the table. You should seek out a deal team with a proven track record with companies of your size. They should be able to offer you personalized service, detailed intelligence, and client testimonials. Remember, it can take quite some time to sell a company, and it’s a very personal process, so you will want to be sure you are happy for the entire journey.