Selling a business is an exciting yet complex process. If you’re feeling overwhelmed by the intricacies involved, rest assured you’re not alone. Many business owners find the sale of their company to be a daunting task, with numerous legal, financial, and operational hurdles to overcome.

The good news is that working with an M&A advisor can significantly reduce this stress. But what exactly does an M&A advisor do, and is the additional cost justified? In this blog, we’ll explore everything you need to know about M&A advisors and how they can help you maximise your returns when selling your business.

What is an M&A Advisor?

An M&A advisor is a professional with a deep understanding of the mergers and acquisitions process. They guide business owners through the complex landscape of selling and buying a business, ensuring that the transaction leads to the best possible outcome. M&A advisors can work across various sectors, with some specialising in particular industries. For example, a tech M&A advisor focuses on helping technology entrepreneurs navigate acquisitions in their niche.

TIP: Many M&A advisors specialise in specific sectors. A tech-focused M&A advisor, for instance, brings specialised expertise to entrepreneurs in the technology industry.

What Does an M&A Advisor Do?

M&A advisors play an active role in buying and selling businesses, providing support throughout the transaction. Here’s how they help:

1. Valuing Your Business

One of the biggest challenges in selling a business is determining its true value. Did you know that overvaluation is a common reason why startups fail to attract acquisition offers? Accurately valuing your business is critical to a successful sale.

An experienced M&A broker will use data-driven insights to provide a realistic and fair business valuation. Foundy's advisors, for example, use data from over 1.1 million transactions, which helps establish a solid benchmark for your business’s worth.

2. Marketing Your Business

An M&A advisor will help you market your business and present it to the right buyers. Using their network, they can ensure your business is seen by prospective buyers who are actively looking to acquire companies like yours.

3. Finding the Right Buyer

M&A advisors take the time to understand your goals. Whether you’re looking for a quick sale or a buyer that aligns with your company’s values, Foundy's M&A advisors will connect you with the most suitable candidates.

4. Negotiating with Buyers

Negotiation is a crucial part of the acquisition process. A skilled M&A advisor will negotiate on your behalf, ensuring you get the best price and favourable terms. By acting as an intermediary, they help balance your interests with those of potential buyers.

5. Preparing for Sale

Before the transaction can be finalised, a significant amount of documentation needs to be completed, including transfer documents, due diligence checks, and legal paperwork. An M&A broker ensures that everything is in order, streamlining the process and reducing the risk of complications.

Suggested reading: A Short Guide to M&A Due Diligence

Why Should I Hire an M&A Advisor?

Hiring an M&A advisor provides multiple benefits that make the acquisition process much smoother and more efficient:

1. Simplify the Acquisition Process

Acquisitions are complex, particularly if it’s your first time selling a business. An M&A advisory service will walk you through each stage of the process, explaining what to expect and ensuring no details are overlooked.

2. Get Your Business Acquisition-Ready

An M&A broker will analyse your company’s performance and help you prepare for sale. They can identify areas where improvements are needed, ensuring your business is attractive to buyers.

3. Connect with the Right Buyers

An M&A advisor will vet potential buyers to ensure that only serious prospects move forward in the process. This saves you time and ensures you’re only dealing with qualified buyers interested in acquiring your business.

4. Stay Focused on Running Your Business

Managing a business while navigating a sale is difficult. By hiring an M&A advisor, you can focus on your business while your advisor handles the complexities of the acquisition.

5. Maximise Your Returns

Ultimately, an M&A advisor’s goal is to secure the best deal for you. They’ll work to maximise your returns by ensuring the transaction runs smoothly, negotiating favourable terms, and finding the best buyer.

Is an M&A Advisor Worth the Cost?

The cost of hiring an M&A advisor can make some founders hesitate, but the value they provide often outweighs the fees. While it is possible to sell a business without an advisor, we don’t recommend it. M&A transactions are intricate, and without professional guidance, you could miss out on opportunities to maximise your sale price.

Foundy Can Help You Find Top M&A Advisors to Sell Your Business

Selling your business can be a complex and challenging process, but with the right guidance, you can maximise your returns and ensure a smooth transaction. Whether you need help with business valuation, negotiating the best deal, or finding the right buyer, Foundy provides the expert support you need at every step.

At Foundy, we offer access to over 1.1 million transactions, along with our Triangular Model, which combines expert advisors and data-driven insights to ensure you achieve the best possible outcome. Our advisors are specialists across various industries, and with step-by-step expert support, we help you navigate the M&A process with confidence.

Looking for the right M&A advisor? Explore our advisor partnerships at Foundy.com/findadvisor to connect with top M&A professionals who can guide you through selling or buying a business. From early planning to final execution, Foundy ensures that your business is well-positioned for success.

No matter where you are on your business journey, connect with Foundy to access the resources needed for a smoother acquisition or sale process.