Why Use an M&A Firm
We understand why and so should you.
Should you use a merger and acquisition firm?
When thinking about selling a business, there are many approaches that a seller can take. Depending on who they ask for advice, sellers might be steered to an attorney, accountant, business broker, or a specialized consultant. Let’s take a look at some of the advantages and disadvantages of these options. Selling a business is not a DIY process. It may seem fairly straightforward, but it rarely is!
Let’s look at some ways people sell businesses
One common scenario is when a business owner is approached by a prospective buyer. This is often someone who is familiar with the business and with whom the business owner has worked over the years. Sometimes, it’s a vendor who wants to buy up, a competitor who wishes to take more of the market share, or just an investor looking for something to buy.
Very often, a would-be buyer either asks the owner what he would take for the business or makes an offer. While most business owners have some vague idea of what their businesses are worth, very few have enough information on current market trends, real-world valuation, and a host of other factors to really pinpoint a fair and accurate price. Many potential buyers count on the fact that sellers don’t really know what they have. On the flipside many sellers think what they have is worth a lot more than what the market would bear. Importance to the owner and value are not necessarily the same thing!
A seller might get lucky. The potential buyer may want to offer a lot more money than the company is actually worth. That’s unusual — uncommon, really–but it can happen! Most smart buyers will lowball a seller and hope for a good deal.
Selling without professional help in this scenario is a little like diving into an unfamiliar swimming pool. In the dark. It could easily be a major—and painful—mistake!
Many business owners seek the advice of their attorneys and accountants for sale. While having an attorney and accountant involved in the sales process is advisable, it’s probably not the best idea to rely on your accountant and attorney to broker the sale itself. It only makes sense. You don’t ask your attorney for help with your accounting, or your accountant to do your legal work. It’s not his or her specialty.
An attorney will certainly have insights into the legal aspects of business selling, but he typically isn’t trained in valuation and marketing. An accountant would have a role in the financial angles of a sale, but even she isn’t an expert in the market trends, positioning the business for sale, and negotiating the best price.
A business broker is a professional who helps sell or buy a business. Most specialize in specific vertical markets, such as restaurants, retail, or construction. For the most part, they do a good job of steering buyers and sellers down the path to a satisfactory transaction. Where business brokers fall short is in larger-scale transactions, those with multiple locations, or national firms.
Healthcare also generally falls outside the purview of traditional business brokers. Healthcare mergers and acquisitions involve a wide spectrum of financial and legal issues that are simply not found when selling, for example, a convenience store. Subtle market nuances and complex legalities make healthcare sales among the most complex transactions in today’s marketplace.
That’s where we come in. At Mertz Taggart, our team of mergers and acquisition‘s experts specialize in the valuation, preparation, marketing, and sale of businesses in the healthcare sector. Most importantly, we bring years of experience and industry knowledge to the table.
We started doing mergers and acquisitions in the healthcare space in 2006. In that time, we’ve seen just about every type of deal, good and bad, large and small. Almost all of the time, we work for the seller. It’s important to us that our sellers get the very best benefit from the sale.
At Mertz Taggart, we know that every client is different, and every transaction is unique. Our team includes financial analysts, legal specialists, and a sales and marketing team that is second to none. We pride ourselves in our attention to detail and expertise in our field.
Mertz Taggart has navigated the tricky waters of healthcare transactions for close to two decades. Give us a call or complete the contact form below so that we can start a conversation. No matter where you are in the decision making process – from merely speculating on selling to determined to get your business on the market as soon as possible – we would like to talk with you, explain how we might help, and see if we are the right fit for one another.
Our team members are ready to answer your questions. Call us or use the form to send us an email!
2161 McGregor Blvd.
Fort Myers, FL 33901
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