How To Choose The Right Investment Bank To Sell Your Business

Many, if not most, business owners have dedicated little or no thought to finding a transaction advisor, an investment bank focused on the sale of the business. No wonder only 20% of small businesses founded just 15 years ago are still around, and even fewer make it through a successful sale.

Getting to the top takes a single-minded focus. But when it’s time to take the next step and transition away from a lifetime of work, it’s important to find an investment bank just as focused on your goals, your legacy, and your next step.

If you’ve been curious about selling your business and finding an investment bank to help you reap the rewards of your dedication, we have found there are key elements to look for in a transactional advisor. Business owners who’ve lasted long enough to consider a sale most likely never tried to go it alone in matters of legal representation, insurance, or other specialized areas. And carefully, mindfully, transitioning away from your business is no time to change that.

Personalized Attention: No two business owners are the same. There’s no “cookie-cutter” approach that will satisfy every seller. You have your own goals and your own concerns. Maximizing value is important, but there are other considerations, including the fate of loyal employees and customers, the structure of the sale, and your legacy. Look for a team that will focus on you and your priorities, not on simply pursuing a deal.

Research Capability: Do you know what your business is worth? How? A dependable team has done the research and knows what investors are buying and paying in real time. Landing on a fair valuation requires research and analysis.

A Broad, National Reach: Of course, a local competitor or buyer may be interested in your business. But a successful team thinks bigger. Interested buyers can be based anywhere, from regional powers expanding their reach to private equity firms raising (and spending) billions on acquisitions.

Knowledge and Preparation: A solid investment bank listens and learns. What’s going on today, now? What are consumers doing? What factors are driving markets? A reliable advisory partner understands which economic levers are being pulled and who’s pulling them.

Experience: When they bring on a transition team, business owners are entrusting that team with what’s most likely the largest asset they’ll ever own. That’s no time for on-the-job training. Look for a team with decades of experience guiding owners through both good business cycles and bad. There’s no substitute for experience.

Proven Closers: Getting a deal across the finish line is equal parts stress, exhilaration, and sometimes patience. Plenty can go wrong, from structuring the payout to shifting (and often unpredictable) buyer demands. Sellers sometimes even get in their own way with incomplete records, doubts, and misperceptions. A strong investment bank demonstrates a high rate of successful closings, including lining up secondary offers in case one offer comes up short.

A Holistic Approach: Successful entrepreneurs and business owners aren’t names on the door. They’re people, families, individuals with their own goals and lives. Look for an investment bank that understands you as a person. An unselfish, attentive transactional advisory team thinks about life after the sale, works with other partners, including tax professionals and financial advisors, to ensure nothing is left to chance, and helps sellers walk away ready and excited for their next chapter.

Selling a business is a deeply personal and emotional experience. From the pride of reaping the reward of a life’s work to the uncertainty of embarking on a new adventure. Demand an experienced team of professionals from an investment bank that’s personally committed to you as an individual with your own ideas and goals. You’ve earned that.