Why You Should Hire The Right M&A Agency To Sell Your Business – A Personal Story
Takeaway: It is vital to the success of your business sale to hire an M&A firm that has your best interests in mind.
I speak from personal experience – when I sold my first business, it was very difficult.
It wasn’t difficult due to poor performance, or anything being wrong with my business.
It was difficult because I initially hired the wrong representation. In fact, I hired a broker, instead of an M&A Advisor.
What’s The Difference Between A Broker and M&A Advisor?
I know both types of firms may seem similar in what they do to sell businesses. However, the differences couldn’t be more different – make sense?
A business broker is almost just like a real estate broker. Both of them are listing agents, one for a business, and one for a property.
The business broker market is strictly a numbers game, the more businesses a broker can list, the higher the possibility that one or two may sell.
And, if one or two businesses sell – the broker makes money – even if their clients don’t.
They normally do not have large lists of qualified buyers, and their listings are often very public as they have to list on major websites showing businesses for sale.
While this may be an option for really small companies that no one wants to buy – it is not a good option for sellable businesses.
Business brokers do not take the time to properly prepare businesses for sale, and usually aren’t even involved in the selling process itself – it is more of a “Oh, a buyer filled out a request, I’ll have them call the seller…” – and that’s it!
Then, IF you sell your business – you pay the broker 20-30%!!!
If your business doesn’t sell – then you are still under contract for a few years, and still have to pay them a commission if you sell through another outlet.
Why M&A Advisor Firms Are Different
A quality Mergers & Acquisitions (M&A) firm usually has many years of experience, and also team members who have started, grown, bought, and sold their own businesses.
This brings to the table large lists of interested parties, investment groups, private buyers, industry buyers, and other professionals looking to buy businesses confidentially, without ever disrupting the normal flow of the business itself.
M&A Firms also help package their clients’ businesses for sale – which means preparing documentation, financials, forecasts, marketing materials, offering memorandums, business valuations, and more.
Proper preparation ensures that the right buyer can make sense of your business quickly, at the right time.
With all of the businesses on the market for sale today – M&A Packaging is one of the most crucial elements to ensure your business gets looked at properly.
In addition to these services, M&A Firms will find buyers using their long lists of qualified prospects, help you negotiate a deal that makes sense, and get you the most money possible for your business.
The process is streamlined because most of the team have been through it themselves.
How Do I Know?
I know how the system works because I’ve been through it, and I’m just like you!
Well, maybe not exactly like you, because that would be weird. But I have been in your shoes:
- I’ve started successful businesses
- I’ve bought successful businesses
- I’ve sold successful businesses
- I’ve valued successful businesses
My first successful exit was from a business that I started from the ground up, literally, in an old warehouse.
We printed t-shirts on a hand-operated printing press by night, while still working day jobs.
Fast forward a few years, and my business had nearly 30 employees, and we were almost doubling every year in sales.
However, there was a problem, our profits weren’t that great (and I had NO CLUE what EBIDTA, pro-formas, packaging, or discretionary earnings were)…
I wanted to sell the business because I had other interests, but I wanted to make sure the business stayed running and was okay.
So, I Googled around, made some calls, and found a business broker.
Initially, the broker made me feel at ease, and did a “from the hip” valuation and told me my business was worth “millions.”
Without any packaging whatsoever, they sent me a contract, then threw the business online to all of the market places.
My business was overpriced, under packaged, and almost instantly irrelevant to buyers.
We had one call from a buyer who put me through the ringer, told me what my business was really worth, and also told me that, until my business is less reliant on me, then no one will buy it.
I was devastated, but still under contract with the business broker.
After the contract had expired over a year later – I had rebuilt the business from the ground up, streamlined our processes, and increased profits by 200%.
Then, I Hired the Right M&A Advisor
The point of all of this is:
YOU CAN GET A FREE ESTIMATE OF VALUE –
LEARN THE SECRETS OF SELLING YOUR BUSINESS
This book is jam packed with examples, templates, and how to guides for selling your business – you can have it for FREE!
READY TO GET STARTED?
There are many aspects to consider when selling your business, make sure you have every part covered by signing up with IAG today!