Selling your business is a major life decision. There are many steps involved for a successful sale, regardless of the worth of your business. Most all business owners experience similar processes while making the decision to sell.
Business owners are often surprised to learn of the various expenses involved with selling. The selling process should be thorough and will include expenses associated with accounting, legal, estate planning, and advisory services. However, you should realize that a higher value for your business may be attained by using the services of professional advisors – including someone who can guide you through the selling process – a person whom you can trust while you take the necessary steps to meet your financial goals.
As your advisors, we are here to guide you through the Merger & Acquisition (M&A) process.
We are responsible for:
- Preparing your preliminary valuation
- Marketing your company and finding potential buyers
- Managing the selling process
- Negotiating the transaction
- Overseeing due diligence
- Negotiating definitive agreements
What it Costs to Work with M&A Advisors
Every investment banking firm is different when it comes to the cost of selling a business. Each firm has specific minimum fees they collect. Additionally, fees will differ depending on the transaction type.
Unpacking the Two Main Types of Merger and Acquisition (M&A) Advisory Fees
While fee amounts may vary, there are generally two types of fees associated with working with an M&A advisor:
Retainer or Work Fee
Typically, investment bankers require a monthly retainer/ work fee for the time required for the sales process. Portions of the fee are normally credited toward the success fee upon a completed sale.
The success fee may be a fixed percentage of the transaction price or vary as a sales price increases. The success fee is charged once the business is sold, but the percentages are outlined from the beginning in the engagement contract. Most success fees are offset by a portion of the amount already spent on retainer costs.
It is important to consult with your investment banker, wealth manager, attorney, or CPA regarding strategies when selling your business. Piedmont M&A appreciates your relationship and brings years of experience and knowledge to ensure that we meet your expectations.
If you would like to understand the process of selling your business, please do not hesitate to contact us at 404.719.4792. We look forward to helping you achieve your M&A goals.