20 Sep The Top 5 Ways an M&A Advisor Can Help Sell Your Business for the Maximum Value
Entrepreneurs are some of the most deliberate individuals you are likely to meet. Every decision from the initial concept of a business to selection of new products is carefully considered, often leading to an optimal outcome.
Launching a business is an investment in your success and should not be taken lightly. Likewise, selling a successful online or Amazon-based e-commerce business is an investment in your future.
You need an intermediary you can trust to help execute your exit strategy. An expert Mergers and Acquisitions advisor will not only guide you through a thorough marketing process but will help you maximize the value of your company in a sale.
Unlike traditional brokers, M&A advisors are investment banking professionals with years of experience closing transactions. They are equipped with the tools and the knowhow to secure the best possible deal and help you achieve your goals.
Here are the top five ways M&A advisors can help you sell your company for maximum value:
- Understanding Your Industry
A top M&A advisor is more than just a great salesperson. They have a deep understanding of the companies they are representing, the markets in which those companies compete, and overall economic performance.
The best M&A advisor will start by learning as much as they can about your company and what makes it unique. Next, they compile research on industry trends and economic indicators to better prepare your business for sale.
For example, if you operate in a niche product category within an industry that is growing but still has relatively low barriers to entry, your advisor can negotiate a higher sale price based on the Opportunity that exists for a new buyer to grow the business and capture an even larger portion of market share.
- Conducting a Thorough Business Valuation
Your advisor will also help you determine the appropriate asking price for your company by reviewing historical and pro forma financials, including Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA).
After assessing performance, your advisor will assign a multiple in order to ascertain the fair market value of the business. To learn more, read our blog post on the business valuation process.
- Establishing Realistic Expectations
Maximizing value in a sale requires a committed and methodical marketing effort. This can be a multi-month journey. Moreover, the process can be a bit overwhelming for first-time sellers and entrepreneurs who work full time on their business. An experienced M&A advisor can deftly guide you through each step of the process, bearing the brunt of the work so that you can focus on overseeing day-to-day operations.
A good M&A advisor will prepare superior offering materials to market your company to prospective acquirers. They will vet the most qualified candidates and find the perfect buyer so that you walk away completely satisfied.
An experienced advisor will consistently exceed your expectations, delivering an uncompromising level of service. They will be honest and transparent throughout the process, helping to ensure that your goals are realistic and achievable. Most importantly, your advisor will not settle for anything less than what you deserve.
- Offering Insightful Financial Advice
The primary function of an M&A advisor is to advise you on how best to prepare your business in order to earn the maximum value in a sale. Growing a business is an ongoing process that doesn’t stop when you decide to make an exit and your advisor will help capitalize on the momentum you’ve built by identifying Opportunities to improve the business’ performance prior to a sale.
It might be as simple as encouraging more website sales by launching an ad campaign or as complex as forecasting proforma financials based on an aggressive five-year expansion plan designed to help the company break into new markets. In any case, the objective is to add value to the business.
Once your deal is live, your advisor will field offers on your behalf, consulting with you along the way and working towards the perfect sale number. An M&A professional can act as your counsel, weighing each offer as it comes in and finally helping you select the best one.
- Negotiating to Accomplish Your Goals
Your advisor is also your advocate. While it is true that advisors have a financial stake in earning you the highest dollar value for your business, they also understand how heavily invested you are in the success of your company. Consequently, they will not recommend that you agree to a deal unless it is in your best interests.
Whether you are looking to retire, take a break before starting another company, or sell a majority share of your business to stay on as a partner, your goals drive the deal process. Your advisor is on your side and will work hard to negotiate a deal which meets your needs.
Selling your business will likely be one of the biggest financial transactions you are ever involved in. An expert M&A advisor will not only ensure that you get the maximum value for your business but will also guarantee your total satisfaction at the deal’s close. Don’t settle for anything less.
THE NEXT STEP
Global Wired Advisors is here to help you sell your Digitally Native or FBA business. We are Mergers and Acquisitions specialists with over 50 years of combined experience in selling online companies. Try our Free Value Estimation Tool to see what your business is worth.
We are committed to providing world-class customer service while earning you the highest value for your business. Our team is standing by – click here to speak with one of our Advisors today!!!