A Comprehensive Guide to Choosing the Best M&A Advisor for Your Needs
June 4, 2020Worldwide in 2018, 37 percent of startups were anywhere from five to ten years old when they were acquired—28 percent were ten to 15 years old. However, 15 percent of startups were only three to five years old when acquired, and 10 percent were two to three years old.
According to Crunchbase, there have been 2,575 acquisitions in 2020 alone. The end of Q3 2019 saw global technology M&A deals alone worth $245 billion.
All that said, not many entrepreneurs anticipate the whirlwind that ensues when they decide to pack their bags and sell their startup. As a startup founder and business owner, you may be well-versed in the ins and outs of your industry, but there’s a good chance you aren’t as prepared to navigate the process of selling your company as you may think. From getting your finances in order, negotiating the best deal with buyers, and everything in between, there’s certainly a lot to manage. You cannot be prepared for the process without knowing what to expect. That’s why we recommend working with a professional M&A advisor.
Here are all the benefits of hiring an M&A advisory firm to help sell your business.
The Process Will Be Quicker
Time is money. The longer you’re bogged down by paperwork, the longer you’ll take to sell your business. Many business owners think that finding a buyer and negotiating a deal will be simple enough. However, the kinds of companies that buy other companies tend to have dedicated M&A staff. That means that they’ll have plenty of time to work out the kinks in the deal and make it work in their favor.
The initial benefit of hiring a professional M&A advisory firm is that they’ll educate you on the process. You won’t be wasting time attempting to research crucial details on your own. Good M&A advisory firms are thorough and handle most of the legwork involved in selling the company, so you don’t have to.
They’ll Bring in New Buyers
You may have found a couple of promising potential buyers from networking and the contacts you’ve made over the years. However, it’s always a better idea more options on the table.
An experienced M&A advisory firm will have amassed a sizeable number of contacts because of the focus of the company. They will also devise a solid marketing strategy to help attract potential buyers.
You’ll Overcome Common Obstacles to M&A
When mergers and acquisitions are delayed, it’s often due to common M&A obstacles faced by buyers and sellers. Some of them include:
- Global or US market uncertainty
- Pending legislation delays
- Mistakes or missteps in negotiation
Business owners who represent themselves almost inevitably find themselves overwhelmed and lacking the necessary experience for navigating the pitfalls in the process. You will be able to deftly sidestep these obstacles when you work with a talented M&A advisor.
They’ll Negotiate a Better Deal
Completing a thorough business valuation and knowing your asking price isn’t enough to negotiate a great deal. Working with an M&A advisory firm will mean you’ll get a well-strategized plan for getting the deal that you want. They will take a thorough look at your business from the inside-out, gauge the market and buyer interest and negotiate the best price for selling.
If you’ve made the decisions to sell your business in South Carolina, Massachusetts, Florida, Georgia, New Jersey, or Pennsylvania, or elsewhere in the US, you’ll benefit with Gulfstream Mergers & Acquisitions as your M&A partner.
We are a leading M&A business advisor with decades of experience in helping clients sell their businesses by maximizing deal value and creating lasting and positive relationships. Our team of experts will conduct an accurate and thorough business valuation. Depending on your needs, we will market your company regionally, nationally, or globally.
Contact Gulfstream Mergers & Acquisitions for more information or call at 1-704-892-5151.