Finding the right M&A advisor is key to successfully meeting your goals. The first step in establishing such a relationship is to understand the role that an advisor plays. While the term varies from region to region, the typical advisor positions their client – a selling company – as a strategic fit for target buyers, communicates the opportunity to various buyers, and manages the process in accordance with a detailed timeline in order to generate a sale.
Given all of these responsibilities, it is not recommended to try to sell a company without the help of an expert. The selling process can take several months to several years, so it is important to recruit an advisor who will work well with you and your company over the course the relationship.
These factors below are what you should look for in an M&A advisor.
Experience
Selling a company takes time and expertise. While it is easy to equate the number of years your advisor has been in the industry with success, this is not a straight-forward indicator. Yes, you should ensure that your advisor has a strong track record of successful deals, but you should also be certain that they have achieved premium valuations for other companies within your industry.
Reputation
Reputation matters. It is critical to do your research before making a selection. Look into past client testimonials and contact other professionals an advisor may work with, including attorneys, accountants, and bankers. It may also be helpful to ask about the advisor’s professional affiliations and participation in continuing education seminars to make sure that they are up-to-date with the latest M&A industry trends.
Strategy
As mentioned previously, you will be working with your advisor for an extended period of time. You want to find someone who is detailed, organized, and who has a results-oriented attitude. It’s a good idea to sit down with the advisor beforehand and have them walk you through their strategic rationales of pursuing international scale, filling portfolio gaps, or building a third leg of the portfolio.
Communication
While the bulk of the work will be left to the M&A advisor, it is important that they provide high levels of communication and advice to you so that you can make informed decisions during the process. You should also be confident in how the advisor communicates with their own team to get the job done as seamlessly as possible.
M&A transactions can be complicated and overwhelming – but they don’t have to be. Symmetrical is here to help. Our team not only has years of experience in the industry, but a track record to prove our abilities. Contact us for more information about our M&A services.
Business owners are often focused on the present moment, creating short-term goals to get them where they want to go fast; but what about a company’s long-term goal, as well as the owner’s future?
An exit plan is one of the most overlooked components of owning a business. Aside from the initial start-up actions, you must also think about questions like how long you want to work in the business, what annual after-tax income you want and need for retirement, and to whom you may want to transfer the company to. While these may seem to be far off questions, thinking about them from the start maximizes value, minimizes risk, and maintains control of your business.
Our team rounded up the top 3 reasons why every business owner needs an exit plan:
Maximize Value
In the eyes of investors, a business with an established exit plan is very attractive. With an increase in equity investments, your business can ensure financial health and maintain profitable sales even in a buyers’ market until the time is right to make your exit.
Minimize Risk
Being prepared with an exit plan is also important in the face of unforeseen or catastrophic events. If for whatever reason you find yourself needing to leave your business, it will take less time and effort to do so if you already have a plan in place.
Maintain Control
With a business usually being an owner’s biggest asset, it is extremely important to remain in control in order to get the most out of the eventual transfer or sale. Having a plan previously setup will allow you to know every step and prepare you for when it is time to sell.
While many people love to reference the quote “live in the moment”, it may not be the best strategy for business owners. Creating an exit plan from the start will save you time, money, and a whole lot of stress when you’re “living in the moment” later on.
Symmetrical works with privately held, mid-market companies, helping business owners understand their current situation and create strategic plans to achieve their business goals. For more information on our team and services, please contact us at info@sym-inv.com.