Selling a business is exciting, but it’s not an easy experience. If you’re overwhelmed by the stress and complexity of selling a business, you’re not alone!

The good news is that an M&A advisor can guide you through the process and help you sell your startup quickly and for the highest price. But what does an M&A advisor do, and are they worth the extra cost?

This blog will tell you 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 M&A process who guides business owners through the complex world of mergers and acquisitions and ensures the best outcome.

TIP: Many M&A advisors specialise in a particular industry or sector. A tech M&A advisor, for example, offers specialist acquisition advice to technology entrepreneurs.

What does an M&A advisor do?

M&A advisors take an active approach to buying and selling transactions and offer support throughout the merger and acquisition process. This includes:

Valuing your startup

Did you know that overvaluation is one of the biggest reasons startups fail to attract acquisition offers? Valuing a business can be difficult and it’s crucial that you get your valuation right!

M&A advisors are acquisition experts and have the experience and knowledge to provide you with a realistic and fair business valuation.

Marketing your business

An M&A advisor will help you market your business and get it in front of the right people.

Finding the right buyer

An M&A advisor will take the time to understand your business goals and connect you with the right buyers.

Negotiating with buyers

An M&A advisor will confidently negotiate with buyers on your behalf and ensure that you get the best price and terms.

Preparing for sale

An M&A advisor will ensure that all documentation is complete prior to the sale. This will include transfer documents, due diligence checks, and other essential legal paperwork.

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

Why should I hire an M&A advisor?

• Make the acquisition process easier. Acquisitions are complex, especially if you haven’t done one before. An M&A advisor will explain each step of the transaction process to you in detail and ensure that you understand what to expect.

• Get your startup acquisition- ready. An M&A advisor will analyze your business performance and (if needed) help you get your startup ready to sell quicker.

• Connect with the right buyers: An M&A advisor will vet buyers and ensure that only those with a genuine interest in acquiring your business move to the next stage.

• Focus on your business. An M&A advisor will manage the acquisition process for you so you can focus on growing your business. Navigating an acquisition is difficult and the last thing you want is to be distracted during the transition process.

• Maximise your returns: An M&A advisor will ensure that the acquisition process runs smoothly and help you get the maximum returns from the sale.

Is an M&A advisor worth the cost?

Many founders question whether an M&A advisor is worth the extra cost. Of course, it’s possible to sell a business without an M&A advisor but we don’t recommend it.

In our experience, the support of an M&A advisor is invaluable during the acquisition process and their fees often pay for themselves!

How much do M&A advisors charge?

M&A advisors typically charge a retainer fee and a commission sale fee.

The retainer fee can be anywhere from a few hundred to a few thousand pounds a month, while the commission fee is a percentage based on the size of the deal. Advisory fee statistics show that the commission fee typically goes down as the deal gets bigger.

How can I find top M&A advisors?

Lucky for you, we recently launched our M&A advisor directory. Browsing our M&A advisor directory is the easiest way to find an affordable advisor that suits your needs and goals.

How to sell my business online

Selling platforms like Foundy have revolutionized the M&A market and made selling a startup quicker, easier, and more cost-effective. We have everything you need to get your business acquired at your fingertips. It couldn’t be easier!

Browse our M&A advisor directory

Join our online marketplace today if you’re selling a business and want expert acquisition advice. Browse our M&A advisor directory and connect with top M&A advisors across a wide variety of industries, or get in touch if you have any questions.

If you're in the process of growing your business towards a funding round or an acquisition, clients have repeatedly recommended utilising a portal. It starts with a free business valuation. This will help you and our M&A advisors understand your company's current position and the necessary steps to position yourself for a successful sale. Foundy factors in over 29 key elements that contribute to your business valuation, ensuring a comprehensive and accurate assessment.

Ready to discover your business's value?
Similarly, if you're a buyer, Foundy's M&A advisors can help you find your next acquisition and streamline your end to end process via an all in one portal.

Running a business and deciding to sell or acquire another can feel like having two full-time jobs. While some business owners thrive on the excitement of buying and selling on their own, many, including myself, benefit from collaborating with experts who bring more sector specific experience. However, it’s important to note that working with M&A advisors is not a one-size-fits-all solution. Hence why we built our advanced portal and Find An Advisor programme to empower you with the tools, education and relevant expert support to help you navigate the end-to-end process and secure a higher valuation.

Check out the free calculator on our pricing page, which shows you the six to seven figures in additional share value Foundy can provide your business.

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