Sell-Side Advisor

If you own a lower middle market business in California and seek to sell your business, here are 5 reasons why hiring a sell-side advisor can help ensure a smooth overall experience:

1. Their extensive experience in the M&A process can provide valuable guidance.
2. They can help identify potential buyers and confidentially approach them.
3. A sell-side advisor can assist with negotiating the sale price and terms of the deal.
4. They can guide you in preparing your business for sale.
5. A sell-side advisor can help manage the expectations of both buyers and sellers.

If you're considering selling your business, don't hesitate to contact a sell-side advisor. With their expert knowledge and guidance, you can be sure that you'll get the best possible outcome from your sale.

Who Is a Sell-Side Advisor and What Do They Do?

A sell-side advisor is a financial and business advisor who helps companies sell themselves to other businesses. These advisors typically have experience working in the mergers and acquisitions (M&A) industry, and they use this knowledge to help their clients get the best possible price for their business. 

In many cases, sell-side advisors are brought in by the company's shareholders or management team. However, they can also be hired by the buyer of the company. Sell-side advisors typically structure their deal teams around the size of the deal they are working on. For example, a minor deal might only require a few advisors, while a large deal could require a team of dozens of experts. 

These firms often have extensive experience negotiating deals, which can be extremely helpful in getting the best possible price for a business. California is home to many large companies that are regularly involved in M&A activity. As a result, there is a significant demand for sell-side advisors in the state.

Sell-side Advisory Services

Sell-side advisory services can add value and improve the business position for the ultimate acquisition. A sell-side advisory service can provide a commercial assessment, operational assessment, functional assessment, and transaction readiness. 

These assessments can help improve the business position for the ultimate acquisition by giving insight into the business, its operations, and its readiness for sale. The assessments can also help identify potential buyers and negotiate better terms for purchase.

In addition, the sell-side advisory service can provide support during due diligence and throughout the transaction process. Ultimately, a sell-side advisory service can help to maximize value and improve the chances of a successful sale.

M&A Questions To Ask

Before signing an engagement letter with a sell-side advisor, asking a few key questions is essential. Here are 10 of the most important questions to ask:

1. What is your experience in advising companies like mine?
2. What potential conflicts of interest should I be aware of?
3. How will you communicate with me throughout the process?
4. What is your approach to valuation?
5. What are the likely buyers for my company?
6. What are the likely terms and conditions of a sale?
7. How long do you expect the process to take?
8. What are the risks and potential downfalls of a sale?
9. What are the tax implications of a sale?
10. How much will you charge for your services?

Due Diligence Questions To Ask

Hiring a sell-side advisor can be highly beneficial during the due diligence process. A good advisor will know what questions to ask to get a clear picture of the business and its potential value. Here are 10 due diligence questions that every sell-side advisor should ask a buyer:

1. What is your experience in this industry?
2. What is your understanding of the business model?
3. What are the critical areas of risk?
4. What is your opinion of the management team?
5. What is your assessment of the financial condition of the company?
6. What are your projections for future growth?
7. What are the potential liabilities associated with the business?
8. What are the key contracts in place?
9. What is the competitive landscape?
10. How did you arrive at your valuation?

Asking these questions can help to give the seller a much clearer understanding of what they are getting into and can help identify any red flags that might be cause for concern.

RBS Advisor

Rogerson Business Services is one of the top advisors in the lower middle market business segment. Andrew Rogerson has successfully sold businesses in various industries, including manufacturing, construction, and healthcare.

In each case, Andrew Rogerson has overcome the unique challenges of the deal and delivered a successful result for their client. Here are three recent examples of Rogerson's successful deals:

Andrew Rogerson successfully sold a manufacturing business despite challenging economic conditions. The recession had impacted the company, but Rogerson was able to find a buyer who saw the potential for a turnaround. As a result of Rogerson's expert negotiation, the company was sold for a fair price, and both the buyer and seller were satisfied with the outcome.

In the second example, Rogerson sold a distribution business-facing intense competition from larger companies. The key to success, in this case, was Rogerson's ability to find a niche market for the business. By focusing on a specific group of customers, they could create a competitive advantage that allowed them to sell the business at a fair price.

Finally, in the third example, Rogerson sold a medical equipment refurbishing company struggling to keep up with changing regulations. The team at Rogerson was able to help the business owners identify new ways to compete in their market. As a result, they were able to close a deal for a fair price and move on with their careers.

See clients' success stories.

Conclusion

Rogerson Business Services is a sell-side M&A advisory firm that has closed hundreds of lower middle-market deals in California. We are dedicated to helping our clients maximize value and achieve their desired outcomes. 

We have a deep understanding of the Californian market and an extensive network of buyers, which allows us to get the best possible price for our clients. We also provide comprehensive support throughout the entire process, from initial valuation to post-closing integration. 

Our hands-on approach and commitment to our client's success set us apart from other firms in the industry. If you consider selling your business, we would be honored to help you navigate the process and realize your goals.

If you have decided to value and then sell your lower middle market business now or within the next six to twelve months in California, click here to get started with this quick and simple form, or call Andrew Rogerson, Certified M&A Advisor, so we can understand your pain points better and prioritize your inquiry with Rogerson Business Services, RBS Advisors.

This is part of M&A Advisory tips to answer some frequently asked questions about Sell-Side M&A series ->