Selling a business is a major event —one that requires careful planning and the right support. But how do you know who to turn to for guidance?
Many business owners naturally think of hiring a business broker, as it’s the most commonly known option. However, a qualified Sell-Side M&A Advisor can also guide you through the process while providing additional financial expertise, strategic deal execution, and in many cases, a favorable fee structure as well.
What is a Business Broker?
Business brokers typically work with smaller, owner-operated businesses that sell to individual buyers, such as retail shops, service-based businesses, and franchise locations.
Business Brokers:
- List businesses for sale and market them publicly on online platforms and through personal channels.
- Introduce potential buyers and facilitate discussions.
- Accept payment at the end of the process which is often a percentage (7-10+%) of the final sale price.
A business broker may be a viable option if you already have clear, consistent financial statements in place and do not need a lot of financial input or guidance.
- You’ve prepared your financials to be presentable, clear, and consistent with prior years.
- You are able to develop forward-looking financial projections on your own
- You are able to respond comfortably to financial questions that the buyer or buyer representative may ask during their review process
- Your business structure is simple, with minimal complexities in ownership transfer
- Your business operations are straightforward, without complexities related to inventory, capital investments, or other items.
- Your deal structure is anticipated to be fairly straightforward as well.
For business owners who don’t need or value a lot of strategic financial guidance, a broker may provide a straightforward way to list and sell their business. Or if the broker does have a fair amount of financial expertise, that can provide a significant level of additional value.
What is a Sell-Side M&A Advisor?
A Sell-Side M&A Advisor works with small and mid-market businesses (typically $1M-$20M+ in transaction value) and helps sellers strategically prepare for and navigate the entire sale process. An M&A Advisor typically has substantial financial expertise (with background in accounting or finance) and can provide valuable input and insight to your process, fielding, addressing, and anticipating, financial-related questions that your buyer may need to understand well in order to move forward in purchasing your company at a price that is attractive to you.
A Sell-Side M&A Advisor provides customized and high-level guidance throughout the sale process – helping business owners to position their company effectively, to value it optimally, and even to connect with more well-qualified and well-funded buyers.
- Providing in-depth financial analysis and valuation guidance.
- Developing targeted marketing strategies to engage strategic buyers confidentially.
- Guiding sellers through due diligence, deal structuring, and negotiation.
Sell-side M&A Advisors work well for business owners who want a proactive, strategic, financially-focused approach to selling their company, with an emphasis on reducing uncertainties and friction for the buyer that can result in higher valuations and a smoother process. And in many cases, with a fee structure that can be highly attractive and competitive as well.
Which One is Right for You: Business Broker or Sell-Side M&A Advisor?
Selling a business involves more than just finding a buyer—it requires careful planning, financial expertise, and a well-structured process to ensure the best outcome. If you are deciding between whether to hire a business broker or a Sell-Side M&A Advisor, consider your business size, buyer type, and level of support needed.
Provided that your financials are fully prepared and you feel comfortable answering seller questions about your financials and driving certain other aspects of the sales process, a business broker can help you connect with the right buyers and be a good solution.
If you would like strong financial expertise to help you address buyer questions and concerns, an optimized valuation, and creative and beneficial deal structures that can help to accelerate and close your deal, a Sell-Side M&A advisor may be the right option for your situation.
How Sabre Financial Group Can Help You Sell Your Business
Selling your business is one of the most important financial decisions you’ll ever make. You don’t have to navigate it alone, and you don’t have to accept a standardized process that may not deliver full value for the company you have built and grown. Our team of M&A Advisors have worked with organizations of all types and sizes on the buy side and sell side of the M&A process, and we offer a high level of financial and transactional expertise to guide you every step of the way. Please feel free to schedule a consultation with us today.