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)
· Avoid advisor fees
· Work directly with buyers
· Transaction speed
· Have a complete hands-on approach
· 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
· Qualified buyers managed in an auction process
· Higher valuations
· Allows business owner to focus on business
· 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 firstname.lastname@example.org.