8. Buyers are interested in executing a transaction at a market based price. But ultimately their goal is to acquire firms at the lower end of the fair market range. Seller’s utilization of an advisor will help ensure the price and terms of the transaction are the best available for the seller.
9. On balance, buyers prefer an independent advisor to represent and advocate for the seller in lieu of the seller handling all the details himself/herself consistent with a number of factors outlined above. It can be an arduous task for the inexperienced seller given the long learning curve.
10. Many of the sellers in publicly announced M&A transactions and nearly all larger sellers have sought out or will seek out the guidance of an independent advisor. The same is true in all other industries. Sometimes it does make sense to follow the pack.
11. Although impossible to quantify, an advisor will deliver additional transaction value in excess of the success and hourly fees paid by the seller client. An advisor will also preserve some of the seller’s intellectual capital and mitigate some of the grief quotient.
Benefits of Using an M&A Advisor was originally published Property Casualty 360.
Tim Cunningham and Dan Menzer are Principals with OPTIS Partners (www.optisins.com), a Chicago based investment banking and financial consulting firm providing M&A, valuation and strategic consulting services to firms in the insurance distribution sector. The authors can be reached at 312-235-0081 and 630-520-0490, respectively, or by email at firstname.lastname@example.org, and email@example.com.