Sell Side M&A Firm with No Upfront Fee

What is a Sell-Side M&A firm? What is the Sell-Side M&A Process, and how does it compare to a Buy-Side M&A Process?

Sell Side M&A Firm

A Sell-Side M&A firm represents the owner of a mid-sized business that wants to sell their company. This differs from an investment bank that typically provides corporate finance advice to large public companies.

The Sell-Side M&A Process starts with an initial consultation. The Sell-Side M&A Advisory Firm will typically meet with the business owner to learn more about the business and review the owner’s financial picture. Different Sell-Side Merger and acquisition companies represent different sizes of companies, and some focus on specific industries. In an initial consultation, both the business owner and the M&A firm can see if they might be a good fit to work together.

Determining the Value of a Business

The next step in working together would be to determine the company’s potential value. The M&A firm would sign a confidentiality agreement, and the business owner would provide some financial information to review. This would typically be the last three years of annual profit and loss statements and a current year to date statement. They will also discuss other business features, such as the customers, employees, suppliers, and the value of any equipment and assets of the business.

The M&A Advisor will then compare this information to what other similar companies have sold for, to recommend a potential selling price. If this aligns with the business owner’s expectations, they will move on to the next step.

Sell-Side M&A Marketing

A Marketing Document will be developed, which provides general information about the business but not the specifics of the company’s name or an exact location. The Sell Side M&A firm will use this document to market the business to potential buyers, including private equity firms, public companies, and middle market strategic buyers. This Marketing may include internet advertising, contacting potential buyers within the industry and related industries, and contacting investment firms that might have an interest.

Confidentiality

Before Potential buyers can get the specific details on the company that the sell side Merger & Acquisition firm is representing, they will need to sign a confidentiality agreement and provide some information on their qualifications. Once this is done, then the sell-side M&A company will provide details on the business that they are representing to see if there is interest on the part of the potential buyer.

Introducing Qualified Potential Buyers

The sell-side M&A firm will vet the potential buyers to determine who is most qualified and interested before making an introduction to their client. Some buyers have a specific type of acquisition target company in mind, and we want to see how closely this matches our client’s company before an introduction. The meeting between potential buyers and sellers will allow each side to gauge interest in going to the next step. The buyer may ask questions about the seller’s product or service offerings, cash flows, and potential expansion of the customer base.

Offers

After the buyer reviews financial statements and has a meeting to answer questions, the Sell Side M&A Firm will solicit offers on their client’s company. They will review these offers with their client and provide insight into the differences between the offers. It’s not only about the total price. It’s also a matter of what is included in the buyer’s offer and how it is structured. For example, some offers might include the accounts receivable, and some offers may leave the accounts receivable for the seller. Offers also vary in terms of how much money is paid at the closing and how much would be paid out over time.

Accepted Offer & Due Diligence

Once the offers are reviewed and negotiated, the buyer and seller will then sign an offer letter that outlines the period of due diligence to be done and the terms of the deal. The due diligence period is one of the last steps in the business sales process. It will allow the buyer to review information about the business in more detail and request additional information from the seller.

Negotiating and signing a Purchase Agreement

Often, during the due diligence period, the lawyer for the buyer and seller will negotiate the terms of the purchase agreement based on the accepted offer. Once everything is agreed to, the purchase agreement will be signed, and the buyer will usually wire the payments due to the seller. The seller will then typically help the buyer with a transition, where they assist the buyer in learning the details of the business before the seller retires from the business.

Awarding Winning Sell Side M&A Firm

Synergy Business Brokers M&A has been providing sell-side M&A advisory since 2002. We have sell-side M&A Advisors in NY, NJ, CT, MA, PA, CA, IL, FL, and TX that can meet with you for a confidential consultation. We have relationships with potential buyers throughout the United States and internationally. We have closed hundreds of transactions and have over 40,000 potential buyers that are interested in acquiring firms in technology, construction, manufacturing, distribution, healthcare, and services.

Synergy has relationships with buy-side M&A advisors that represent their client’s interest in acquiring a business. We have sell-side M&A experience in Tech Mergers, Healthcare Mergers, Manufacturing M&A, Construction M&A, Distribution M&A, Professional Services, and more. We are a boutique sell side M&A firm that focuses on selling companies with annual revenues of $700,000 to $300 Million.

Award Winning Sell Side M&A Firm