Two Strategic Paths: Choosing a Business Broker or M&A Advisor
Some business terms related to selling your business are sometimes used interchangeably in conversation, so you might not realize that business brokers and M&A advisors work with different types of businesses and employ different strategies.
Which one is right for your business?
Here's a high-level look from Sunbelt Business Advisors:
To borrow an example from Investopedia, a newly trained auto mechanic who wants to buy an established shop he can grow over his career would work with a business broker, while an automotive firm looking to build a multi-city network of garages under its brand or a franchise model would use an M&A advisor.
Business brokers typically advertise a price for the small business and market it through listing websites, email campaigns, and more — maintaining confidentiality and negotiating terms and price as needed.
M&A advisors usually work with larger businesses that might have a board of directors or a management team that needs to be involved. M&A advisors build a list of potential buyers and then present the opportunity to them. Many utilize an auction-style process to determine the ultimate buyer.
Sunbelt Business Advisors and its sister company, True North Mergers & Acquisitions, offer both processes. Sunbelt is known as the largest seller of Main Street companies, while True North offers its proprietary QuietAuction™ process for deals ranging from $5 million to $150 million. To learn more, visit sunbeltmidwest.com and tnma.com.
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