How M&A Intermediaries Representing the Seller Affect the Buyer
M&A intermediaries typically have many years of experience in evaluating buyer intent. Thus, they are able to quickly ascertain whether business buyers are serious or not. In contrast, a seller who is not using a M&A intermediary, sometimes referred to as a broker by the layman, may invest considerable time in courting each buyer who turns out not to be serious or qualified.
Once potential buyers have been found, the M&A intermediary also have the ability to convert interest in buying a business into an actual sale. Great M&A intermediaries know how to create competition among multiple possible buyers in a way that moves the sale of a business along and successfully raise the ultimate sales price. When buyers make an offer, the M&A intermediary can interpret the offer and even suggest changes to an offer that make it more likely for the business sale to occur.
M&A intermediaries additionally alleviate the problems associated with the fact that buyers and sellers generally don’t trust each other. If a buyer gets upset as a deal tilts in your favor, you want the buyer to be upset at the M&A guy and not you, the seller. The M&A intermediary can serve as a middleman to interpret communications and lead the buyer whenever possible.
Finally, the M&A intermediary understands all the minutiae required to close a business sale transaction. Typically, a buyer and seller may not understand all the nuances of getting the deal to closure, so it’s ideal to have an experienced M&A intermediary involved who can facilitate and expedite the process.