Mergers & Acquisitions (M&A) Broker

The M&A Broker Process of Selling a Company

As an M&A broker (also known as a business broker, m&a advisor, or deal intermediary) we are a professional firm that facilitates the buying and selling of businesses. This means that we specialize in connecting buyers and sellers, facilitating negotiations, and managing the overall M&A process.

An M&A broker plays a crucial role in the transaction by providing expertise, guidance, and access to a network of potential business buyers. Unlike large investment banks, we have been known to work with companies as small as $1m in revenue and help them to successfully sell their business.

The Raincatcher M&A Process

How we Maximize Exit Proceeds for our M&A Broker Clients

Sell-side due diligence

Due diligence is traditionally done by business buyers and not business brokers. However, our comprehensive sell-side process includes a diligence process before we bring a business to market. 

Our comprehensive diligence process is designed to drive the highest value for the business owner as buyers know that there won’t be any skeletons in the closet once they submit an offer and start spending money on legal and financial diligence.

Specially designed brokerage or M&A auction process

Depending on the size of your business and industry your company operates in, we may recommend a traditional brokerage process with a listing price. Or, a competitive auction process with buyers submitting the price and terms for negotiation. 

Our buyer list is comprehensive and will be tailored to include (or exclude) and participants in your industry who may make great strategic buyers or who you want to avoid knowing the business is on the market.

Short-listing finalists

It isn’t uncommon for strong, sizable companies to get 5+ indications of interest (soft offers). We’ll then validate those buyer groups, attend dinners where they meet out clients, prepare further data on the business and negotiate the deal terms that buyers will propose in their final offer.

Negotiate LOI terms and facilitate diligence

Once LOI’s have been received from potential buyers we work with our clients to select the most attractive offer before executing the exclusive LOI.

It’s common for diligence to take 60-90 days before closing. This requires a significant time commitment from all parties. Additionally, final deal points are negotiated and contested during this period.

Talk to the experts

Care to learn more about Raincatcher’s M&A brokerage process and what we can do for your business? Get in touch with us for a complimentary consultation.

Request a Consultation with an M&A Broker

If you are doing $1m+ in annual revenue, feel free to request a consultation with our M&A advisors. We have licensed brokers located across the country and expertise in a number of different industries.

Process of Maximizing Business Value When Selling with an M&A Broker

  1. Valuation: Your broker will help determine the value of the business being, considering various factors such as financial performance, industry trends, market conditions, and comparable transactions.

  2. Confidentiality: Maintaining confidentiality is essential during the sell-side process. The M&A broker ensures that sensitive information is protected and shared only with qualified and interested buyers or sellers who have signed confidentiality agreements.

  3. Marketing and Deal Promotion: The M&A broker develops a marketing strategy to attract potential buyers or sellers. This typically involves preparing marketing materials, conducting targeted outreach, and utilizing industry databases.

  4. Buyer Screening: Your broker will screen and qualify potential buyers or sellers to ensure they are serious, financially capable, and have a genuine interest in the transaction. This saves time and effort by focusing on qualified parties.

  5. Negotiation Support: The broker acts as a mediator and facilitator during the negotiation process. We not only help get the highest valuation for your company, but for the best terms as well. There are a number of terms that go into a purchase structure, such as: holdbacks, earnouts, rollover equity, seller financing etc. Additionally, purchase agreements will include reps and warranties, indemnifications, non-compete agreements, etc.

  6. Due Diligence Coordination: The broker coordinates the due diligence process, ensuring that necessary documents and information are shared between parties. They help manage the flow of information, address any questions or concerns, and ensure a smooth due diligence process.

  7. Closing and Transition: Your broker supports the closing process, working with legal and financial professionals to finalize the transaction. We help ensure all necessary documents and agreements are in place, facilitating a smooth transition for both parties.

The Difference Between a Business Broker and M&A Advisor

The main difference between a business broker and an M&A advisor is somewhat illusory but largely lies in the scope and complexity of the transactions that we handle. At Raincatcher, we are fortunate enough to have experience business brokers and middle market investment bankers on our team, giving us the ability to work with small, main street companies and larger middle-market businesses and provide a range of M&A consulting services.

The term “m&a broker” is primarily used by business owners who are looking for a middle-market style auction service for their company which was historically orchestrated by a larger M&A firm or investment bank.

M&A Broker FAQs

We aim to provide complete transparency to our clients to help illuminate what can prove to be a complicated process of selling their business.

How Long is the Process to Sell A Business

Most of our clients are lower middle-market companies ($500k – $10M in EBITDA). Clients in this size range typically benefit from a full auction process as it will drive multiple bids for their business. This process takes 7-9 months on average.

Is The Selling Process Confidential?

Yes. We make every prospective buyer register with us, sign an NDA and go through a vetting process before they ever see the name of a business that is listed for sale.

How Many Companies Do You Sell Per Year?

We work as partners or as teams of three on most of our clients deals. On the average year each member of our team will be a part of 4-6 successful closings.

How Do M&A Advisors and Brokers Get Paid?

Like most business brokers, we charge a small retainer when signing a client on, but primarily get paid by charging a success fee that is a percentage of what we are able to sell the business for. This fee varies based on the size of the business, how quickly it will sell, how much preparation work and sell-side due diligence will be required from us, etc.