What To Consider When Choosing An M&A Advisor

If you’re thinking about selling your business, an M&A advisor in Oklahoma City is a great resource to help you. They will perform a business valuation, create marketing materials, manage buyers, and facilitate the due diligence process.

They also know how to get the best price for your company. They will work hard to find a buyer who will see the value in your company.

They Have Experience

A quality M&A advisor will have years of experience in helping companies through mergers and acquisitions. They know the ins and outs of preparing marketing materials, vetting buyers and managing the due diligence process.

In addition to this, they also have negotiation expertise that can be critical in securing a premium outcome for the company. They have a deep understanding of the dynamics of M&A deals, and can use their knowledge to drive competitive tension among interested buyers.

They should have a well-defined process that they follow throughout the entire sale, from marketing the business and vetting potential buyers to managing the due diligence process and closing. This ensures that the transaction is successful for both sides of the deal.

They Have a Network

There are consultants and advisors on all sides of the mergers and acquisitions world, from investment banks acting as intermediaries in mega mergers, legal firms undertaking due diligence and contractual work, and change management experts who play an advisory role in the post-merger integration phase.

Good M&A advisors have a network that includes industry contacts and access to key buyers worldwide. It also gives them greater insight into the prevailing deal landscape, which is useful in helping you find and acquire a suitable company or acquisition target.

They also know how to value your business properly. This can include assessing market trends, current activity and average multiples.

A good M&A advisor should be able to provide you with a valuation assessment that is in line with your internal expectations. They should also have a process that reflects your specific objectives and goals for the transaction.

They Have a Track Record

Choosing an M&A advisor with a track record of success will help you make the right decision for your company. Especially if you’re considering a transaction that’s more than $2 million in value, you want to choose a professional with extensive experience.

The best M&A advisors will be familiar with the specific needs and challenges faced by small businesses, as well as how to structure a sale process to achieve your goals. They will also help you identify potential risks that could impact your outcome.

M&A advisors work at a variety of firms, from solos to boutiques and mid-sized regional banks. Typically, a smaller firm will have one or two senior advisors with a wide network and deep knowledge of the industry.

M&A advisors are an invaluable asset for companies seeking to execute transformational transactions. Their expertise helps them communicate the merits of each deal to all key audiences – investors, employees, customers, vendors and regulators – to ensure successful near and long-term outcomes.

They Have a Fee

M&A advisors are typically charged a fee based on the value of the deal they consummate. This fee can be a percentage of the overall transaction value or it may be a flat retainer.

M&A success fees vary by industry, size of deal, type of advisor, services offered and market conditions. Many use a formula similar to the Double Lehman calculation, others have their own preferred structure and rates.

If you’re considering an M&A advisor, be sure to research their processes and how they have performed in the past. Ask to see case studies, feedback from clients and testimonials.

You also need to consider if you like the chemistry between you and your advisor. M&A deals are usually long and require a lot of hard work, so it’s important to find an advisory partner that you can build a strong bond with. You can do this by taking your time researching and interviewing candidates. Be sure to establish who will be spending the most time with you and how they will be working together during the entire sale process.