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.
Dave Kauppi's original article can be found here: http://businessbrokerchicago.blogspot.com/2006/12/selling-your-business-business-broker.html