A recent survey explored company owners after selling their companies. A few data points from the survey may help you assess whether and to what extent an M&A advisor can add value to the transaction.
The summary included 63 participants whose companies were sold between 2010-2014. It represented 18 industries, and included lower middle and middle market participants, with companies ranging in value from a few million to almost $250 million.
One of the most important revelations of the survey was the extent to which M&A advisors added value to the transaction.
How M&A Advisors Add Value
All survey participants agreed that engaging an M&A advisor added value to the transaction. Data from the study revealed several areas in which M&A advisors added value. They include:
M&A Advisors: A Key Driver of Value
Sellers consistently offered feedback indicating that hiring an M&A advisor conferred significant value, and that the additional value almost always outweighed the extra costs. Some value is less visible, and difficult to quantify. For example, an advisor can free owners to run the business, alleviating owner stress and freeing owner time. This prevents the business from falling into decline during the sale process.
One thing is clear from this data: hiring an advisor consistently adds value, and does so across several domains.