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Welcome to the February edition of M&A Insights 2018.  Our goal here at CKS Advisors is to help you and your clients stay up-to-date on the current Merger and Acquisitions climate.  Stay tuned for more brief updates on M&A activity in the future.

This month’s report highlights: Is It Smart to Attempt an M&A Transaction on Your Own? by SDR Ventures:  Click here to view report. 

The report details the pros and cons of hiring an Investment Bank to help sell your business:

Completing a deal without an Investment Bank (DIY)

Pros:

·  Avoid advisor fees

·  Work directly with buyers

·  Transaction speed

·  Have a complete hands-on approach

Cons:

·   Lower valuation

·   Less negotiating leverage- often a single buyer

·   Difficult to find a qualified buyer

·   Very time consuming

·   Could loose focus on running the company causing possible performance issues

Completing a deal with an Investment Bank

Pros:

·  Qualified buyers managed in an auction process

·  Higher valuations

·  Allows business owner to focus on business

Cons:

·   Advisor fees

·   Slightly longer deal process

·   Less face to face time with buyers

Our two takeaways:

  • Hiring an Investment Bank leads to higher valuations, qualified buyers, and greatest chance to complete a successful transaction
  • According to an Axial Survey, 100% of sellers surveyed claimed their Investment Banker added value to their business valuation

If you or a client would like to learn more about the M&A market or is ready to explore opportunities, we would be glad to meet. You can contact me at 480-351-8533 or myoung@cksadvisors.com.