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Business Broker vs. Mergers and Acquisitions Specialist: Which One Do You Need?

March 31, 2023

The Key Differences Between Business Brokers and Mergers & Acquisitions Specialists

If you’re considering selling your business, you may be wondering whether to hire a business broker or a mergers and acquisitions specialist.

While both professionals can help you achieve your goals, there are some crucial differences between the two. Understanding these differences can help you make an informed decision about which one is best suited to help when it’s time to sell your business.

Understanding the Role of a Business Broker

A business broker is a professional who helps business owners sell their businesses. They typically work with small to medium-sized businesses and have a deep understanding of the local market. Business brokers can help to value your business, find potential buyers, negotiate the sale, and manage the transaction process. A good business broker will also help you maintain confidentiality throughout the process, which can be important if you don’t want your employees, customers, or competitors to know that you’re selling the business.

Understanding the Role of a Mergers and Acquisitions Specialist

A mergers and acquisitions (M&A) specialist is a professional who helps companies merge with or acquire other companies. They typically work with mid-sized to larger businesses and have a deep understanding of the industry and market trends.

The best M&A specialists help buyers identify potential acquisition targets, negotiate the deal, and manage the integration process. Expert M&A specialists also help buyers evaluate the financial and strategic benefits of the acquisition, and ensure that the deal is structured in a way that maximizes value for your company.

When to Hire a Business Broker

To broker quite literally means to negotiate a deal or agreement between two parties. It’s as simple and straightforward as that, and that’s what business brokers essentially do: they act as the middlemen between you, the seller, and the buyer.

If a business is a mom ‘n pop store with an annual turnover of $5 million or less, a broker for business will do just fine because brokering a simple deal between two parties should be a fairly straightforward process.

When to Hire a Mergers and Acquisitions Specialist

If you are looking to sell a larger business, typically with a value of $5 million or more, you may want to consider hiring a mergers and acquisitions advisory firm.

M&A specialists have a deeper understanding of the complexities involved in selling larger businesses, including navigating legal and financial issues, identifying potential buyers, and negotiating complex deals. M&A advisors can also help identify potential acquisition targets if you are looking to grow your business through acquisitions.

Importantly, seasoned mid-market M&A specialists will conduct in-depth evaluations, guide the seller on how best to prepare for sale and market the business to a global network of independent buyers and private equity groups.

Ultimately, an M&A expert will help prepare your business for sale and ensure that the deal is structured in a way that maximizes value for you as the seller.

Choosing the Right Professional for Your Business Needs

When it comes to selling a business, it’s important to choose the right professional to help you achieve your goals. While both business brokers and mergers and acquisitions specialists can assist with sale transactions, they have different areas of expertise, each suited for different types of businesses.

Always consider factors such as the size and complexity of your business, your goals for the transaction, and your budget when deciding which professional to hire.

If you are unsure which professional to hire, it’s important to do your research and speak with both business brokers and M&A specialists to determine which one is best suited for your specific needs and goals. Don’t be afraid to ask for references and compare fees before making a decision; after all, selling your business is the biggest and most important deal of your life!