I recently came across this article by US-based merger and acquisition (M&A) advisor Dave Kauppi.
Since visiting the US about five years ago and meeting with a number of specialist advisors handling business transactions, I have regularly followed Dave’s blogs.
In this article, Dave compares the different approaches taken to selling businesses by business brokers and M&A advisors. The article is aligned to trends and activity in the US market, but it’s also relevant for the Australian small and mid-cap private business market.
Essentially the differences are about size of business, valuation, complexity of business, and the type of advisory and broking assistance you as a vendor require.
Many of our clients see us as M&A advisors as we offer services including valuations, due diligence and negotiation facilitation; however we also offer business broking services to clients with less complex transactions when they are wanting added service, a targeted approach and a breadth of capability. It’s ‘horses for courses’.
When having an initial discussion with a prospective client about their business sale needs, we always say: “Whoever you choose and whatever services you require, ensure you have a business broker or M&A advisor who closely matches your expectations.” Sometimes this discussion leads to us recommending other providers or approaches for specific clients – it’s about getting the right match. When it comes to selling a business, it’s important to get the right advice and broking assistance.
For a confidential, obligation-free consultation on our business broking and M&A advisor services, or a market appraisal or valuation on your business as decision support for a future potential sale, please contact the JPAbusiness team here or call us on +61 2 6360 0360.
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Dave Kauppi's original article can be found here: http://businessbrokerchicago.blogspot.com/2006/12/selling-your-business-business-broker.html
James Price has over 30 years' experience in providing strategic, commercial and financial advice to Australian and international business clients. James' blogs provide business advice for aspiring and current small to mid-sized business owners, operators and managers.