The Benefits of Using a Trusted M&A Advisor When Selling Your Business
Bringing an M&A advisor onboard when stepping away from your company can make for a faster business sale and smoother transition. Selling your business isn't a decision you'll enter into lightly. You've spent the time and effort to make your company successful, so when the time comes to step away for good, you'll want to know the business is in good hands.
However, locating that perfect buyer who is willing to pay what you're asking isn't easy. There are countless variables involved, and advertising your company through mainstream channels might not provide the desired results.
Fortunately, an M&A advisor can assist with the selling process, from start to finish. An advisor will help prepare your company for sale, determine an asking price, locate buyers, and negotiate the terms.
Here's a look at some benefits associated with contacting a trusted M&A advisor before putting your company on the market.
An M&A advisor will save you time Many business owners overlook just how much time goes into selling a company. You're already busy running the business and adding the sales process to your workload can quickly become overwhelming.
First, you'll have to deal with buyers, as they'll often call you in the middle of the day to discuss aspects of your company with you. These conversations can quickly evolve into negotiations, which will take even more of your time.
An M&A advisor provides interested buyers someone else they can call with questions and inquiries. It also ensures you don't have to spend your time negotiating when you could be preparing the company for its next owner.
Marketing is another part of the sales process that can take a lot of your time. You can't just throw your business up on a website and expect to receive serious offers. This fact is especially true if you're in the HVAC or plumbing industry, where interested buyers could be limited to those with industry experience.
Once again, this is an area where an M&A advisor can provide support. An advisor who’s experienced in your industry will have established networks of potential buyers who could be ready to expand or enter your industry.
Receive better offers for your business The quality of the offers you'll receive goes hand-in-hand with the prospects you're reaching with your marketing. If you don't target your marketing toward people who know your company's value and understand how the industry works, you'll set yourself up for a series of lowball offers.
M&A advisors can leverage their network of consolidators, venture capital groups, private equity firms, and businesspeople to match you with a buyer who understands the worth of your business. This service, in turn, makes it more likely that you'll receive an acceptable offer within a reasonable timeframe.
Find the right buyer When selling the business yourself, you might be inclined to take the first offer that comes your way. After all, you're already extremely busy, so getting the money and stepping away from the company immediately might seem like the best option. However, there is some risk involved, especially if you sign an extended contract where the new owner pays you from the profits generated by the business.
The issue is that the buyer might not have the experience necessary to operate the company and could run it into the ground quickly. This scenario leaves you holding the remains of a failed business without receiving much in the way of compensation before the new owner gives up.
While these extended contract sales can be advantageous in some circumstances, jumping at the first offer without doing your due diligence could leave you in a challenging situation later on.
An M&A advisor can help connect you with the right buyer, someone who is making the ideal type of offer to meet your needs, and remove much of the risk from the situation.
A smoother process Finally, using an M&A advisor leads to an overall smoother business sale process from start to finish.
Your advisor will begin with a business consultation that includes an in-depth analysis of your company, including its financials. From there, the advisor will go over your goals and understand how you'd like to see the sale and business proceed in the future. Next, the advisor will develop marketing materials that showcase the company while emphasizing any key points potential buyers should understand before making an offer. The goal is to weed out anyone who wouldn't make a serious offer anyway by focusing on the company's most vital issues.
Your advisor will also handle your negotiation and sale terms when you begin receiving offers.
The result is a seamless process where a professional is on your side every step of the way. That way, you aren't left trying to figure out the next step when you should be focusing on running the business or planning what you'll do after finalizing the sale.
Get the assistance you need Getting fair value for your company without putting additional stress on yourself should be your top priority when selling your business. Letting go of a company you've worked so hard to create is already difficult, and you don't need more work on your plate as you prepare to move on.
SF&P Advisors is a boutique firm in Fort Lauderdale, Florida, that helps HVAC and plumbing businesses successfully navigate the sales process. We leverage our years of industry experience and key contacts to drive optimal results for you. Contact us today for a free business estimate valuation.