Mergers & Acquisitions Advisories For Small Businesses
By Melvin J. Howard
While the corporate world keeps reporting news about large size M&A deals and transactions that are supported, brokered and executed by large investment banks and involve large size firms, small and medium sized businesses may find it difficult to identify suitable M&A advisory firms which can assist them in such deals. I will focuses on how small and medium sized businesses can identify the right M&A advisory partners, important information on service offered by M&A advisory firms, what attributes to look for and what steps to follow to get the best dealing partners.
Why and when should small and medium sized firms consider M&A?
Opportunities or necessities drive strategic business decisions. Businesses go through different phases and may need expansion, contraction, partnership, spinoffs or even closure/sale of certain business units or the business as a whole. A sale by one party is an acquisition opportunity for the other.
There can be several scenarios and reasons for a firm to consider M&A:
Why is it challenging for small businesses to find M&A advisory firms?
How can M&A advisory firms help small businesses? Services & Expectations from M&A advisors:
Small business owners may not have necessary expertise and network to find suitable opportunities which can provide the required strategic turnaround. M&A advisory firms can help, as they can assist with their expertise in these areas. The following provides a generic list of services available by advisory firm for any M&A deal. Depending upon the services opted for, the charges and fees may vary. The M&A advisory firm assists in:
What's your intended goal and expectations from proposed M&A?
Before approaching any M&A advisory firm, it is very important to do your homework with the most important focus remaining on what you want to achieve from the deal (purpose). Here are a few important points to consider:
Selecting and working with M&A advisory firm:
For small businesses, a business deal is a once in a lifetime opportunity, which may make or break the entire business. It becomes very important to select the right partners. The following guidelines can help:
Go for M&A advisor, the job of business broker ends when the deal is complete. M&A advisors work with clients clearly detailing long term plans, structuring and detailing every aspect of business integration.
The Bottom Line
M&A advisory services are available from large investment banks to small boutiques, but may come at a high cost. It is important to assess them on all applicable aspects, for expertise, services, and related factors. Constant involvement, assessment and joint working with M&A advisors will not only make the deal clear, smooth and easy, but will also hone the business acumen and skills of the owners for the leanings during the process.
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