Business sales and mergers are complicated and time consuming processes. As such, business owners are advised to utilize a merger and acquisition intermediary in order to sell their business under the best possible scenario, receiving favourable pricing and terms. Finding an appropriate intermediary can be a difficult and stressful process, as selling a company is one of the most important financial transactions in an owner’s life- but has the potential to offer significant returns in your transaction. Numerous elements need to be considered when searching for the appropriate professional to handle the transaction.
It is important to have a comfort level with both the merger and acquisition firm and the individual business intermediary with whom an owner of a company entrusts to achieve its transaction objectives. A reputable firm should provide high levels of attention, professionalism, service, and expertise irrespective of the size of the transaction. One notable consideration is that many firms will market their services through seminars and then charge significant ($50,000 and up) upfront fees in order to engage the business. Firms that do so receive a considerable amount of money regardless of results, and ultimately do not align their interests with those of their client.
With the complexities involved in the business sale process, it is important to exercise due diligence by asking for referrals, seeking out credentials and bios, and reviewing past transactions to ensure that the company is familiar with the industry and/or similar business model at hand. It is also a good idea to review the M&A firm’s marketing process. A business owner needs to ensure that his or her transaction will be confidential, and that the intermediary has a plan of attack for marketing the business to a large pool of qualified buyers and investors. An intermediary firm should also be willing to work with a client’s professional network of attorneys, accountants, and other key individuals to gather information about the business and assist in critical activities such as recasting financial statements.
The Principals at Sun Mergers & Acquisitions, a New Jersey based M&A firm, saw a gap in the service levels provided to small and medium sizes businesses as compared to large corporations. Sun’s niche is to provide these companies with the level of representation that previously had only been available to much larger firms. In order to do so, Sun limits the number of assignments at any given time to ensure its ability to be highly pro-active and responsive, as well as to provide a high level of attention to clients from the senior professionals in the firm. This attention starts with a detailed analysis of a prospective client, the current conditions of the market it services, and various growth and strategic opportunities that may be available through an M&A transaction. The initial analysis provides an accurate understanding as to realistic market valuation and likely transaction structure expectations. It is performed in advance of an engagement to mutually confirm that Sun’s opinion of likely valuation is in line with the client’s expectations prior to making a commitment to the selling process. Sun continues to align its goals with those of its client by employing a success based fee structure, ensuring that it receives compensation only after achieving the desired result.
Sun M&A’s track record and service oriented approach to the business sale process has led to more than 200 successful transactions among small and mid-size enterprises. For more information on locating a solid, experienced business intermediary to assist in the sale of your business, visit .