Selling your business is a major decision, and that is just the beginning. The process involves figuring out the how, when, price, and buyer. That is why selecting the right sell side advisory firm is crucial—not only for the process and outcome, but also for how the founders feel before, during, and long after the sale.
So, how do you choose a sell side advisor when you are considering stepping away? How do you differentiate between the many mergers and acquisitions advisory firms? There are several specific questions to ask, the answers to which can make your choices clear. First and foremost, it is to understand why a sell side M and A advisor is so essential to any successful sale.
Merely brokering the sale of businesses for a decent price is not enough to make the transaction a success. Preparing clients in advance to help increase enterprise value, targeting a specific range of potential buyers for the best match possible, tailoring transactions for the specific markets and sectors in which the business operates, successfully marketing the business to the right buyer pool, and ensuring that those transactions meet the needs and interests of the founders of the business are all essential components of any successful advisor and client relationship. In essence, the approach and work product of skilled, successful sell side advisors like Optima Mergers and Acquisitions make clear that they understand that your business is not just some commodity.
Many of the quantitative functions of mergers and acquisitions advisors have become standardized with the advent of widely available financial modeling and analysis technology. Valuation, in particular, has become a largely level playing field when comparing the work of competing M and A firms. Still, access to that technology, familiarity with it, and the knowledge and skills necessary to apply and tailor it to each business differentiate advisory firms from one another. When speaking with potential advisors, this is an important starting point: how they prepare clients to get the most out of valuations, how they execute those valuations, and how they move forward from them. In essence, these conversations help business sellers gain an understanding of a potential advisor’s quantitative advantages and the relationship they can expect to develop between that advisor and themselves.
There is no question that long, well established track records of successful sale transactions in your specific sector or market are important when evaluating any prospective advisor. Equally important is an advisor’s ability to prepare and look after each client as though they are a niche business unto themselves, so a breadth of varied transaction experience does allow advisors to have accurate expectations and prepare their clients for what is to come. In a perfect world, one need not choose an advisor with a very narrow focus or an advisor with broad exposure when there are advisory firms that reflect both breadth and depth. Thankfully, advisors like Optima M and A, who have the experience and expertise to deliver for a wide range of clients, tend to be those who are also genuinely interested in deriving value for their sell side clients, and this allows them to tailor their experience for the best interests of all of them.
Sell side advisors with a track record of deriving advantageous pricing for their clients are one thing. Sell side advisors who focus on deriving value for their sell side clients is quite another. Obviously, dollars count and good financial results for the sellers of a business are essential. Still, when an M and A advisor knows firsthand what it feels like to start, grow, and then part with a business, when they understand in a meaningful way the important distinction between value and mere price, the process and circumstances of any sale are far more rewarding for both the client and their advisor. The principals at Optima Mergers and Acquisitions advisors, for example, are very well versed in what it is like to be founders of a business, and it informs all that they do in the service of their clients.
All of the foregoing considerations are about the relationship between the seller and the advisor. Once the sell side is ready, creating and executing a strategy for identifying potential buyers and marketing to them is where a sell side advisor’s experience and knowledge really sets them apart. Compatible large players and mid-size companies looking for strategic acquisitions, acquisition minded private equity, private equity financed roll up transactions, and other potential types of buyers all have different perspectives and priorities in the acquisition market. Understanding the advantages of targeting each type of buyer and how to market to them in a way that reflects the long-term interests of the sellers takes real skill, specific knowledge, and significant savvy. A history of clearly demonstrated successes, of real results, is the best indicator of an advisor’s strength in this most essential phase of the sale of an enterprise.
Organizations commonly mischaracterize what they describe as their “values” through a sincere misunderstanding. They incorrectly describe how they aspire to conduct business as their values. That may sound good, it may even be admirable, but true organizational values are not aspirational. A firm’s true values reflect how it conducts business, and the experience of its clients and counterparts in doing business with them should affirm those values.
How do you know whether a sell side M and A advisory firm’s values are what they say they are? When engaging with potential advisors, listen carefully to how they describe the way in which they conduct their business:
Ultimately, your intuitive response to potential sell side advisors counts as a legitimate objective criterion. How they respond to your inquiries and describe their business process is often the best insight into what their true values are. Whether an advisor’s values match yours and make you comfortable enough to put your trust and confidence in them for the sale of your business is something only you can decide.
At Optima Mergers and Acquisitions, we look forward to working together to gain that trust and confidence. Reach out to request a confidential consultation today.
Optima Mergers & Acquisitions has been nominated for three 2025 M&A Advisor Awards for its role in the Acquisition of Texas Ecogrow by NextGen Partners.
A well-drafted LOI sets expectations, guides negotiations, and promotes a smoother and more efficient deal process.
Choosing the right M&A team is essential, but it’s only part of the equation. Even with expert guidance, business owners play a critical role in setting the stage for a smooth, efficient, and profitable transaction.
