merit investment bank grey opt2
Technology
Industrial
Infrastructure
Consumer
Book A Discovery Call

Tips for Choosing an M&A Advisory Firm

news article3
Reading Time: 2 minutes

M&A advisors can add real value to a transaction. Here are a few tips to consider when choosing an M&A advisor to partner with as you begin to prepare for a sale.

Get Your Books in Order

Having your books in order can speed the sale along, and will instill confidence and trust in potential buyers. Small enterprises often struggle to maintain their books, especially as their business grows. So take some time to get to know your business’s numbers and control the books. Your financials send a clear message about how well the business is being run. Make sure that message is a positive one. The process of selling your business will have its ups and downs – do what you can beforehand to ensure that the process goes as smoothly as possible. In the end, the prep you do now will only benefit you at the end of the process.

Know That M&A Firms Come in All Sizes

M&A firms may employ just a person or two, or dozens of experts. There’s a certain level of cache that comes from working with a large global firm, but that prestige is often offset by costs. Large firms are often less focused and specialized than smaller businesses. You may actually get more attention and better specialization from a smaller shop.

Larger firms tend to have significant resources and clout. They are highly adept at speeding the process and mining their contacts. Meanwhile, boutique firms are often more specialized in specific industries.

Consider interviewing several different firms. Ask for a specific plan for marketing and selling your business. Assess which firms understand your business and philosophy, then ask yourself which firm feels “right.” After all, you will be working with this company for many months.

Fees are going to play a major role in your decision, and in the deal. The key is to get the most out of the fees you pay—not to get fees that are the lowest in absolute terms. So weigh the fee structure against the value the firm promises, and then choose accordingly.

About Merit Investment Bank

Merit Investment Bank is a leading Boutique Investment Bank focused on serving middle market companies. We are a client-focused team of experienced entrepreneurs, operating executives, and investment bankers with expertise in a broad range of industries. Unlike traditional banks that focus on the transaction, we set our sights on the long-term goals of your company – and we provide the personalized service to assist you every step of the way. Our firm is known to provide strategic merger and acquisition investment guidance, corporate finance and consulting support services for boosting the growth of business.

1. Immediate Post-Closing Actions

  • Confirm Closing Deliverables: Verify wire transfers, escrow deposits, and payoff letters. Ensure all signed documents are stored and circulated appropriately.
  • Communications: Issue press releases and internal announcements. Host internal debriefs to clarify deal implications and next steps. Share FAQs to address employee and client concerns.

2. Financial & Tax Considerations

  • Tax Planning: Review capital gains implications and possible elections (e.g., 338(h)(10)). Optimize allocation of proceeds among trusts, estates, and investment vehicles.
  • Wealth Management: Establish an investment strategy for sale proceeds, factoring in liquidity, diversification, and risk tolerance. Revisit estate and philanthropic plans.

3. Operational Transition

  • Integration Roadmap: Define Day 1, Day 30, and Day 100 milestones. Align IT systems, compliance, and reporting frameworks.
  • Governance & Management: Clarify new reporting lines, identify key management for retention, and set up transition service agreements where necessary.

4. Employee Retention & Culture Integration

  • Retention Programs: Offer stay bonuses or performance incentives to key employees.
  • Culture Alignment: Host integration workshops to harmonize values and workflows between merging organizations. Use pulse surveys to monitor morale and engagement.

5. Customer & Partner Management

  • Customer Retention: Conduct proactive outreach to major clients to reassure them about service continuity. Offer transition incentives if needed.
  • Supplier & Partner Relations: Reaffirm contracts, introduce new leadership, and mitigate potential disruptions in the supply chain.

6. Legal & Compliance

  • Ongoing Obligations: Track escrow releases, earnouts, and indemnification timelines. Update registrations, licenses, and insurance policies.
  • Dispute Preparedness: Maintain a documentation log and standardized process for handling any post-closing disputes.

7. Long-Term Strategic Planning

  • For Sellers: Outline reinvestment strategies—whether in new ventures, passive investments, or philanthropic initiatives.
  • For Buyers: Execute synergy realization plans and monitor KPIs to measure integration success. Refine strategy as market conditions evolve.

8. Key Deliverables for Merit Investment Bank

  1. Post-Sale Communication Playbook – For employees, customers, and press.
  2. Tax & Wealth Planning Roadmap – Personalized for sellers.
  3. Integration Milestones Tracker – With Day 1/30/100 progress indicators.
  4. Retention & Culture Alignment Plan – Ensuring people continuity.
  5. Escrow & Earnout Monitoring Checklist – For legal and financial oversight.

Merit Investment Bank as a leading boutique investment bank is focused on entrepreneurial middle-market companies. Merit Investment Bank Executes sell-side M&A, buy-side M&A, and capital advisory services, debt and equity capital raises, corporate finance, and valuation services.

Securities offered through Finalis Securities LLC Member FINRA/SIPC. Merit Investment Bank and Finalis Securities LLC are separate, unaffiliated entities.

Latest posts

0 Comments
;