Starting the Process Takes Advisory

If you’re planning to sell your business, you might have dreams of retirement—or of moving on to your next venture. No matter what your dreams are for the future, achieving them begins with getting the right support today. Many owners make the mistake of assuming that, because they sell products and services everyday, they also have the necessary skills to sell their business. But you need an investment banking advisory firm for that. Selling a business is an extremely complicated undertaking that can easily become a full time job. Moreover, any buyer worth selling to will have an expert advisory team on their side of the negotiating table. You’ll be at a significant disadvantage if you don’t hire your own M&A firm.

So why does the process always begin with advisory? Here’s what you need to know.

Planning for M&A

You’ll extract the most value from your company if you plan for a sale well ahead of the process. An M&A firm can help you identify key sources of value, as well as any liabilities you might be able to address. They get to know your company and how it runs, so they can more effectively market it to buyers. The more lead time, the better, so if you think a sale is imminent call an M&A firm today.

Valuation

How much is your business worth? And who is most likely to see its true value? Most owners struggle to answer this question because they’re too close to it. An M&A firm can be immensely helpful with valuation. They can also help you understand why buyers might be interested—and whether any specific factors might increase or undermine their interest. Valuation surprises are a common challenge in middle market businesses, so work with a valuation expert early.

Identifying and Marketing to Buyers

No matter how connected you are in your industry, an M&A firm with significant experience has more connections, and more knowledge of who is most likely to be shopping for a deal. Your advisory firm can prepare marketing materials designed to attract your ideal buyer. And then, they can pre-vet potential buyers to screen out window shoppers and present you with a list of highly qualified buyers. This saves immense time, and can ensure you get the highest possible sale price by choosing a buyer who will see your company’s true value.

Managing the Deal

From signing of the purchase agreement through closing, the deal demands significant time and energy. This includes negotiating deal terms, developing an integration plan, responding to due diligence requests, communicating with your team about the deal, and much more. It’s simply impossible to give your full attention to your business and to the work of selling it. And this means your business could lag at a time when growth and success are critical. Or you could lose sight of the deal, causing it to lose momentum. With an M&A firm in your corner, though, you’re free to focus on your business while an expert team sees the deal through.

Don’t go it alone. The sooner you reach out for help, the better.