If you’re planning to exit your Dallas business in the next year or two, one of the very best things you can do to ensure a successful sale is hire a reputable M&A firm. Selling a company is nothing like selling a product, and most owners simply lack the expertise and experience necessary to shepherd the process through to a successful completion. When it’s time to sell, many owners become penny wise and pound foolish, doing anything to save a quick buck. But a quality M&A firm is an investment in your business and your future. Here are five reasons you need an investment banking firm on your team.
It Saves You Time
Selling a business is a complex undertaking that can quickly morph into a full-time job. If you’re contemplating doing it all alone, that means you'll be undertaking the immense responsibility of selling your business at a time when it is critically important to also keep your business profitable and efficient. Doing both at once is just not reasonable.
An M&A firm saves time by focusing on the sale, so you can focus on running your business. This can potentially add significant value to a transaction, in addition to ensuring the transaction moves along as quickly as possible.
They Can Help You Find Buyers
The most lucrative sale is one that involves a competitive bidding process with multiple interested buyers. M&A firms draw upon their professional networks to help you attract interested, well-qualified buyers who are willing to pay top dollar for your company. That means less time and effort for oyu, and in most cases, also means a higher sale price.
They Know How to Manage Common M&A Challenges
The M&A process is highly complex, with factors you might not consider weighing heavily on how long the deal takes, the final deal value, and how many interested buyers you can recruit. Your investment bank’s deep understanding of your individual sector as it relates to the larger market can help them anticipate and get ahead of common challenges, so the deal doesn’t lose momentum and die an early death.
They Can Help With the Negotiation Process
Final sale price is front of mind for most sellers. But there’s more to the total value of the deal than just the final price. Deal structure also matters, and can greatly affect how much money you walk away with—and whether you have any further obligation to the business. The right M&A firm can help you understand how various deal terms may affect final value. They also lend credibility to the negotiation process, and can help level an otherwise unequal negotiating table, particularly when you’re working with a highly experienced buyer or PE firm.
They Offer Significant Peace of Mind
No one wants to believe they’ve walked away leaving money on the table—or worse, that they’ve signed up for a deal that exposes them to significant liability. M&A advisors draw on years of expertise and experience to ensure you get the best possible deal for your company. That means you can retire—or move onto your next venture—confident that you really did do all you could to honor the years of hard work you’ve invested in your company.