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What You Should Look For In A Merger & Acquisition Intermediary

Check to see if the candidate:

• Has many years of experience as M&A Intermediary. – Not just a main street business broker. – Interests and background beyond that of a real estate broker.

• Has credential of Certified Business Broker (CBI)

• Has history of success selling mid-sized companies.

• Works nationwide, not just locally.

• Emphasizes methods to maintain confidentiality.

• Prepares written valuation (including comparables in SIC industry).

• Recasts financials to increase the value.

• Prepares a written Marketing Plan with a timetable.

• Prepares professional and comprehensive Descriptive Offering Report (“book”). – Describing historical results but selling the future opportunity.

• Understands the value of goodwill.

• Optimizes the value and terms in the transaction.

• Has appreciation of the tax ramifications to parties and has relationships with experts.

• Utilizes multiple modes for marketing your company.

• Has a proprietary database of a large number of potential buyers (including PEGs, VCs, and registered buyers).

• Can evaluate the pros and cons of various alternatives.

• Belongs to M&A Source, the world’s largest association of intermediaries.

• Possesses strong negotiating skills.

• Enjoys being a middleman (buffer) between parties.

• May allow the seller to be the “back stop” in the negotiations.

• Can coordinate the sell-side activities with associated specialists and advisors: – CPA/accountant – Tax attorney – Estate attorney – M&A transaction attorney – Escrow officer – Insurance carrier/agent – Real estate landlord – Lender/banker – Financial planner

• More interested in closing a transaction than advising.

• Has broad background including sales experience.

• Has actually bought & sold their own company.

• Is a team player.

• Relates to owner’s unique situation, including emotional issues.

• Is preferably a M&A Master Intermediary (M&A MI).