The decision to sell your business may be one of the most lucrative moves of your career as a business owner. A smart way to approach sell-side M&A is to ask for professional help. While shopping around for assistance, you’ll encounter business brokers and M&A advisors. The two may sound similar, but there are distinct differences that can make or break your sell-side venture.
The financial markets can present a rocky road and your ultimate goal is to sell your business for maximum value. Here are some of the top reasons why your middle-market business should turn to an M&A Advisor or investment banker over a business broker.
An M&A Advisor will Tackle Larger Projects
Although both business brokers and M&A advisors may want to sell your business, the size of your business and the complexity of the sale process will typically determine the best option. If you are a middle-market or national company, an M&A advisor or investment banker is the person you need on your side. Business brokers have a narrower scope for their deals and often focus on businesses that are small scale, easier to evaluate, and are part of an overall less complex process.
Business Brokers Offer Limited Services
Business brokers have a very limited scope when offering their services. They’ll present you with some potential buyers, and will work on the general sale, but don’t expect them to go to bat for you as an M&A advisor does for their clients.
M&A advisors take your needs into account and work around the clock using investment banking advisory strategies and negotiation tactics. They also possess the connections for legal and financial services should the need arise.
In short, a business broker can sell your business for a set cost, but an investment banker or M&A advisor will fight tooth and nail for the best result.
M&A Advisors and Investment Bankers Want Compatibility for You
M&A advisors only want the best for their clients. They don’t just put your business on a market and hope for a buyer. Before your business is even offered to potential buyers, much research is performed to find out who your qualified prospects are in the market. A trusted advisor will seek out buyers who are best suited for the future of your company in its market and ensure that your life’s work ends up with a buyer you can trust.
M&A Advisors Make Sure All Goes According to Plan
Your venture with an M&A advisor doesn’t end when the ink dries on the contract. Getting the deal done is only part of what we want. Your deal outcome may have included several stipulations and details like concessions. An M&A advisor will follow your deal to ensure that at the end of the day, you don’t leave a cent on the table.
Trust Kratos Capital With Your Transactional Future
The expert M&A advisors at Kratos Capital, LLC have experience successfully selling middle-market businesses from a variety of industries. Our investment bankers are client-centric and always strive to provide quality advisory services that reflect our expertise and give you a seller’s advantage. Ready to sell your business? Contact us today to start the M&A process.