Tips for Choosing the Right M&A Advisor


As an owner planning an exit, one of your most important decisions is the advisor you hire. This expert requires some consideration and is often the missing link between here and a successful exit.

Many advisors claim to be the best, often with the assistance of flashy sales tactics. Consider these characteristics of a truly effective advisor. Here’s what to look for:

Industry Expertise
It’s not enough to seek out a skilled advisor. You also need one with expert knowledge in your industry. This gives them a deep understanding of your services and market, in addition to the ability to quickly identify companies seeking to acquire businesses within your niche.

An advisor who works in one specific industry will also have many valuable connections. This allows them to generate more bids, creating a competitive sales process that drives up the final deal value.

It doesn’t matter how much training they have. If they haven’t previously handled deals of similar size and scope, they don’t have the necessary expertise to oversee your deal. Ask about how they have handled legal, financial, and other hurdles since this gives you insight into their ability to think creatively and critically. Also, ask for references from companies of similar size or in a similar industry.

Every owner wants to sell for the highest possible price under the best possible terms. It’s easy to feel attracted to advisors who tell you everything looks great and that your ideal price is reasonable. But be skeptical of firms that don’t offer a reality check. No business is perfect, and owners often overestimate the value of their business. Listen closely to the advisor to discern how they arrive at the value of your business. If they can’t give clear metrics, they might just be giving you the bluster you want to hear. Don’t let your ego drive the sale. Make decisions based on which advisor will actually add value—not which one makes the most impressive false promises.

About Edgemont Partners
Edgemont Capital Partners is a specialist healthcare investment banking firm providing the highest level of mergers and acquisitions advisory services to founder-owned and entrepreneur-run healthcare and life sciences companies in the lower middle and middle markets. Our world-class transaction expertise is a result of our extensive and proven track record of success. We have advised on over 150 transactions representing more than $60 billion in combined value.