Bringing the right investors and business owners together bears many similarities to matchmaking. At the end of the day, you have two parties who spend time getting to know each other (dating), realize that they are stronger together than apart (let’s get engaged!) and agree to a partnership (a marriage of sorts).
An experienced, middle-market, M&A firm can serve as the multi-million dollar matchmaker that smoothly guides a private equity-business owner relationship from start to finish. You just need to make sure your matchmaker has your best interests at heart. Look for a matchmaker (investment banker) who will:
1. Spend time learning about your goals – or what you’re looking for in a mate. During this step your diligent investment banker will develop highly focused, strategic, acquisition criteria that can save you both time and money.
2. Research, interview and identify potential partners who would be a good match for you. Your experienced investment banker will only present candidates who are highly likely to fulfill the goals and desires you seek in a partnership.
3. Understand that mutually beneficial financials are essential to a happy marriage. Both parties have financial goals in mind, and a quality M&A firm will look for synergy and solutions that can benefit both sides.
4. Conduct a background check to ensure your prospective mate is on the up and up. Comprehensive due diligence is a critical step in the M&A process. An experienced investment banker will conduct a thorough due diligence review, analysis and valuation of the acquisition candidates you find intriguing.
5. Facilitate and prepare a marriage contract that is acceptable to both parties. Full-service M&A firms can help you structure the transaction, negotiate a deal, document the transaction and arrange financing if necessary.
6. Offer many years of diverse experience and a high success rate in arranging successful marriages. To ensure an optimal outcome, look for an investment banker with proven success, a full-suite of services (financial, legal, marketing and HR due diligence) and who also understands the importance of bringing buyers and sellers with amenable cultures together.
Like matchmakers, all investment banking firms are not equal. If you’re a private equity firm looking for a multi-million dollar matchmaker in the mid-market, choose your M&A firm wisely.
Photo Source: © pixbox77 - Fotolia.com