Role of an M&A advisor
The process of understanding the steps that you need to take to sell a business is a rather simple and straightforward as such. However, the process of knowing how you can improve the value of your business and market your business effectively is totally different. This is where an M&A (mergers and acquisitions) adviser can be so helpful for you. They work mainly on three areas — marketing your business to potential and interested buyers, negotiating the sale for you along with others like lawyers, and achieving the best outcome possible for you when it comes to price.
The role of an M&A advisor
For starters, they will explain in detail every phase of the transaction process — this will make sure that you understand what you can expect from the deal. They will analyze how your business is performing. If it is right they will work with you to make sure that you are ready for the sale. This part could take anywhere between six months and two years — actually it varies from one business to another. They will provide you with a fair valuation of your business and this will give you an indication as to what your business is worth.
They will work with you and help you put together the documentation that is necessary for such a process. This includes the likes of business plans, management presentations, and financial forecasts. They will market your business which means that they will present it to the right people at the most opportune times and also create a competition for the same. This means that they will increase the value of the offers that come your way. They will work with other third parties and steer the process to make sure that all the legal documentation and due diligence necessary in this case is prepared the right way.
They will manage the initial responses coming your way, and vet potential buyers. This way, they will ensure that only those buyers with an actual interest in buying your business get through to the next stage. They will arrange meetings and, if appropriate, attend them with you as well. These professionals will also provide potential buyers with the information that they will need to make an offer for your organization. Once due diligence is done with they will negotiate with buyers and agree the best deal that can be reached for your business.
There is so much more that these professionals do apart from what we have said so far. They will prepare all sale documents and make sure that both you and the buyer come to an agreement on all the critical areas such as working capital and taxes. This reduces the chances of the sale not happening later on. They will work with lawyers and you to finalize the sales and purchase agreements. The best time to involve these professionals is right at the beginning when you think of selling your business. There are also several factors to consider while hiring them such as the size of the transaction.