Hiring an M&A Advisor: What’s the Value? Part 1

Posted By: Karen Fisman

You’ve spent years, decades even, building your business.  And along the way, you’ve figured things out, learned from your mistakes, and realized success.  Now you’re ready to consider an exit strategy; maybe you’re thinking about selling imminently, or in the next five years.  You have friends and colleagues who have gone through this. Some have hired M&A advisors, while others opted to do it themselves, as they’ve always done, avoiding the advisory success fee in the process. 

What should you do?  Does an M&A advisor create tangible value in a sale of business, or given the associated fees, and the knowledge you have of your industry, does it make more sense to do it yourself?

As an M&A advisory firm, we recognize that our own views on these issues would (rightfully) be perceived as biased, so we sought out independent sources to provide answers.   While we found several relevant discussions and papers, the most compelling, because of the authors’ independence and the significant sample size examined, was a research paper from the University of Alabama that specifically considered whether “Hiring M&A Advisers Matter[s] for Private Sellers”.

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