An informed advisor should certainly speak intelligently about the industry, industry segments and business models, appraisal methods, kinds of capital and buyers sources, and the process of the service that you will be hiring them for. Take the time to pay attention to them and inquire questions to gain comprehension of their expertise and knowledge. They should be able to articulate what they know and how they will serve you to add value to the engagement, as a potential advisor to you. A credible advisor will do the same on you and your company before entering into a relationship and you should be suspicious of any that will not, just as you should do your due diligence on them.
M&A advisors will come from a variety of professional backgrounds; sales, entrepreneurs, accountants, attorneys, banking and a great number of other disciplines. Those credentials alone are insufficient though. To be effective, an M&A advisor has to be skilled in accounting principles, contract negotiations, law, sales and marketing business valuation and finance. With regards to knowledge of acquisitions and mergers, there are simply a few professional associations that offer education in the states. The International Business Broker’s Association© and Merger & Acquisition Source© will be the most reputable offer and organizations the Certified Business Intermediary (CBI) and Merger & Acquisition Master Intermediary (M&AMI) certifications which require significant course work and demonstrated transaction experience. When it comes to expertise in business appraisals and valuations, you can find three main organizations which provide education in america. The American Society of Appraisers©, the National Association of Certified Valuation Analysts© and the Institute of Business Appraisers© will be the most reputable offer and organizations the Accredited Senior Appraiser (ASA), Certified Valuation Analyst (CVA) and Certified Business Appraiser (CBA) certifications which also require significant course work and demonstrated engagement experience. On many occasions, an M&A advisor will have to be licensed in either property or securities brokerage to barter the sale of a business and acquire paid a contingent fee. While not many business sale transactions are carried out as stock purchases, a securities transaction, for instance a stock sale, that may be negotiated by an unlicensed broker could be later over turned from a court which can have significant financial ramifications to suit your needs.
Whether contracting with the advisor to value your company, sell it or acquire others, the advisor will not be very effective if they do not have good processes in place. The objectives, strategies and processes ought to be explained for your needs in the beginning. An advisor that lacks a well-planned strategy is like a general sending troups to war with out a battle plan as well as the result could be the same – wasted resources and failed execution. Clearly defined processes will also be a sign of experience and capability.
As in any relationship, the character of the individual(s) that you may be working with must be of high importance. In the event the advisor will likely be representing you, then you should ensure that they may be someone that you prefer personally, will handle your case in the professional manner, will continue to work hard and place your interests above their own personal, and it has the personality to mediate and manage multiple parties effectively.
When seeking a professional merger and acquisition advisor, make sure that you weigh each of these factors into your consideration and speak to multiple advisors before making a decision. Choosing the right one can lead to highly fruitful and long-lasting relationship for both parties to the engagement, even though choosing the wrong advisor can be a costly and painful experience. For more information please visit Leland Sandler Executive Advisor