If you’re selling your business, should you use an M&A Advisor (or Investment Banker)? Are they worth the fee? Obviously, with our work I think so. I read an op-ed where a skeptical owner sold his first business using an advisor and felt that he learned all he needed to in order to sell his second business years later. He didn’t use an advisor and acknowledged the mistake in not appreciating their value. His takeaways? Advisors (1) create a scenario to get a better price, (2) push the potential acquirers and take the pressure off the seller (who will have to work with them post-closing), (3) do the exhaustive and time-consuming work to manage the entire process and thus allow the seller to stay focused on the business, and (4) take away the buyer’s 100% control of the process, leveling the playing field.
It’s always validating to learn that the work we do is important and adds value in the emotional and intense process of selling a business.