Award Winning Sell Side M&A Firm
What is a Sell Side M&A firm? And, what is the Sell Side M&A Process, and how does that 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 where the Sell-Side M&A Advisory Firm will typically meet with the owner of the business. They will find out more about the owner's business and go over the owner's financial picture. Different Sell Side Merger & Acquisition companies represent different sized 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 potential value of the company. 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 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 is in line with the business owner's expectations, then 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 name of the company 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 as well as related industries, and contacting investment firms that might have an interest.
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 close this matches our client's company prior to an introduction. The meeting between potential the buyer and seller 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 customers base.
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 difference 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 receivables 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 are assisting the buyer to learn 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, 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 27,000 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 $50 Million.