Finding an Advisory Firm
Since I’ve decided that I’m definitely using the aid of a mergers and acquisitions advisory firm, I decided to compile a list of qualities I’d like my ideal firm to possess. I hope this helps anyone else seeking to sell a company.
- A good reputation. It is important to ensure that they have closed transactions and that they have a strong track record doing so. The best way to do this is to look for what are called “tombstones” on their website. These are closed transactions Secondly, look for client testimonials either in the form of letters or videos (or both). Also, look for industry awards as well on their site, if they have any, that is a real plus.
- A personalized action plan. When I discuss my plans and short and long-term goals, I wanted my advisors to actually take my specific needs on board, and incorporate them into their strategy. I want them to have the ability to anticipate challenges that are unique to my situation, and explain how they’d negotiate them. Also, while I’d love the whole deal to be closed quickly, I definitely don’t want an advisor for whom speed is the primary objective. Basically, I was looking for someone who really cared about my needs, not a commission.
What I found to be really important in addition to these website related ideas is to look for a firm that ONLY works on the sell-side of the business. IF they only do sell-side then they never work for buyers and so there is no conflict of interest.