How to Choose the Right M&A Advisor

When selling a business, the right M&A advisor is a critical piece of the puzzle. With one, your chances of success are greatly improved.

An M&A advisor adds tremendous value to the process by managing it from start to finish. They can also assist in negotiating transactions, sourcing buyers, limiting distractions, and establishing credibility in the market.

Experience

When choosing the right M&A advisor in Oklahoma City, it is vital to ensure they have the appropriate experience for your situation. This should include recent industry experience and an understanding of how the M&A market operates in your industry.

M&A is a highly complex process that requires a high level of expertise to complete the transaction. It also involves many parties and a significant amount of communication and coordination.

If you are a business owner looking to sell your company, an M&A advisor can help you navigate this process and get the best possible deal. They can also assist you in building a team of qualified professionals to help with the transaction.

An M&A advisor can be the difference between a profitable and unsuccessful sale of your company. Their years of experience and expertise can ensure you achieve the desired results. Choosing the right M&A advisor can also save you money in the long run.

Reputation

When it comes to selling your business, reputation is critical. You don’t want to hire an advisor with a lousy community reputation or one that will lead you down the wrong path.

A good M&A advisor will have an excellent track record of helping companies sell and will be familiar with your industry. They will also be able to guide you on how to create value for your business.

When you choose an M&A advisor in Oklahoma City, you’ll want to make sure they have a strong reputation in the community and are well-known in the M&A industry. In addition, they should have a strong network of attorneys, accountants, and bankers who work with them. Therefore, it’s a good idea to interview these people and ask them about their experience working with the advisor.

Fees

When choosing an M&A advisor, it is essential to consider their experience, success rate, and fees. This will ensure you select an M&A firm that is a good fit for you and your business.

M&A advisors are paid on the success of closing the deal, but their fee structure can be complicated. For example, some charge a success fee independent of the monthly retainer or commitment fee. However, this is different.

In addition to success fees, advisors may also charge milestone fees. These are payments made at specific points throughout the sale process, such as when a draft purchase agreement is delivered or upon signing the letter of intent.

Flat percentage fees are another famous structure in which a minimum success fee is set for the deal. Again, this is an incentive for advisors to work hard to achieve a higher sales price than would be possible without a success fee.

Transparency

There are many factors to consider when it comes to a business sale. These include cash down, earn-outs, tax consequences, and estate planning. A good M&A advisor will walk you through these considerations and help you determine the best route to sell your company.

In addition, you’ll want to find out what fees the advisor will charge for their services. A bundled contract is generally preferable, as it will save you money in the long run.

When choosing an M&A advisor in Oklahoma City, ensure they’re transparent about their fee structure. This is particularly important regarding success fees, which can add millions to a company’s final sale price.