You have decided to sell your business, and you thought that was the toughest part. The actual process of selling a business is equally, if not more, challenging. One of the first questions that come to mind is – Should I hire an M&A advisor to sell my firm? Definitely. Having an M&A advisor represent you increases the credibility of your business.
A University of Alabama study found that private sellers received a higher acquisition premium ranging from 6-25% when they retain M&A advisors. The benefits of hiring an M&A advisory firm are many. Here are some of the most important ones.
Why should you hire an M&A advisor to sell your firm?
It’s a complicated process
While strategic advisors can help, you need a skilled and expert M&A advisor to get the best possible deal. Understanding your business industry is not enough to navigate through the complex process of a sale.
Paperwork stretching back several years, understanding regulations, current economic conditions, correct business valuation, expert negotiation, the right buyers – the list is endless. As a business owner representing yourself, you might be overwhelmed by the complexity and amount of work needed. Hiring an M&A advisory firm to sell your firm will help you avoid all these pitfalls.
They will find you the right buyers
You may have found potential buyers through your networks, but it’s always best to keep your options open. An experienced M&A firm will have an extensive network of buyers and contacts. They will be able to find you the right buyers who understand your business and build on from where you leave.
They will get you the best deal
The first step to finding the best deal is to get a thorough business valuation. The next step is to decide the best asking price. This involves many factors like your business valuation, current market prices, buyer interests, future growth prospects and much more.
They will get the selling done quickly
In addition to being complex, selling a business can be a lengthy process. And the more long-drawn-out, the more complicated it can become. The frustration of delays and setbacks are real. We have come across cases where the sellers settled for a lesser deal than they were worth, just so that they could get it over with.
If you are on your own, you must be prepared to wait for the right price. Working with the right M&A advisor gives you the advantage of getting the right price at the right time. An experienced M&A advisory firm will find you the right buyers, get the paperwork done, introduce you to strategic advisors all in a timely manner without diluting their service quality.
You get Peace of Mind
The devil is in the details. Managing a sales process and strategy can be excruciatingly detailed and skilled. While you will still need to be involved in the selling process, M&A advisors can take the burden off you. You get the peace of mind of knowing that the process is in the best hands while you work on your business or at the next venture.
The benefits of hiring an M&A advisor to sell your business are many when you find the right advisor– a strategic partner who understands your business and your expectations from the sale. Why should you hire Arrowvine to help sell your business?
We will support you in areas including: