Whose Sale is it Anyway? What is the Role of an M&A Adviser?
For many business owners, the role of an M&A adviser is seen in very similar terms to an estate agent. After all, both are selling large assets on your behalf. This is a fair comparison for the way that some M&A advisers operate – although, we would argue, none of the good ones. It may sound strange coming from the pen of an M&A adviser’s blog, but the role of an M&A adviser is not to sell your business for you! Confused? Allow me to explain.
Whose sale is it anyway?
The first thing any good M&A adviser should acknowledge is that the business is yours to sell and not theirs. It may seem a little obvious, but some advisers out there are more interested in achieving a quick sale, and therefore a quick turnaround on fees and maximum profit, rather than achieving your aspirations and goals.
At the end of the process, the only one who can make that decision to sell is you, but after the emotional rollercoaster of a business sale you want to be certain that the deal on the table is the best one available for you. Understanding your goals – personally, but also for the company, your team, and customers – should be a central concern for an M&A adviser.
Preparation
Practically, the role of an M&A adviser falls into three broad categories – the first of which is preparation. Business owners who have bought and sold multiple businesses are a rare breed, and so most are unprepared for what is to come.
The M&A adviser is there to help prepare the business, and the business owner, for the ups and downs of the journey to company sale. This takes many forms, including but not limited to;
- preparation of sales documentation
- preparation of financial forecasts
- coaching of business owners ahead of meetings
- how to handle and respond to an offer
- who to tell, when to tell them and how to communicate your intentions.
Introductions
One of the most valuable things an M&A adviser can do is to make introductions. Most business owners can happily name a handful of the usual suspects when it comes to who is likely to buy your business. But even if one of these few ultimately becomes the acquirer, introducing other potential acquirers from a wider pool of interest – such as overseas or from diverse industries – will have a positive impact on value and terms.
Advice
The third key role of an M&A adviser is all in the name… to give good advice. It may seem a little basic, but the key here is the difference between advice and good, qualified, experience-led advice.
At Entrepreneurs Hub, we understand the journey of a business owner – having been through that journey a number of times ourselves. We are time-served M&A advisers with hundreds of successful deals under our belts, on both sides of the fence. And we know our limitations, which is why we work as a team and why we bring in expert advisers where required in more specialist areas, such as Intellectual Property, tax or perhaps a trusted wealth adviser to give advice on how much you need and managing your wealth afterwards.
If you would like to talk to us about how we can advise you as you consider a sale, or even if you have been approached already, we would love to speak with you. We can offer a free, no-obligation meeting and business assessment session where we will find out about your business and your aspirations, and give our qualified and expert opinion on saleability and value ranges you could expect.
Give us a call on 0845 0678 678 or book a meeting here if you are interested.
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FAQs – Selling Your Company
How do I sell my business in the UK?
Selling a business in the UK typically involves preparing financial information, obtaining a valuation, identifying suitable buyers and negotiating the terms of a sale. Most owners work with an M&A adviser to manage the process confidentially, approach qualified buyers and maximise the value achieved.
At Entrepreneurs Hub, we talk about five key areas that make the difference between success and failure when selling your business. Read more…
What is my business worth?
A business is typically valued by applying a multiple to its sustainable profit, often EBITDA or adjusted net profit. The appropriate multiple depends on factors including growth, recurring revenue, customer concentration, management strength, owner dependency, market conditions and buyer demand.
Determining what your business is worth involves more than applying a simple formula. Use our Business Valuation Calculator to obtain an initial valuation range, or read our simple business valuation guide to understand the factors buyers consider.
How long does it take to sell a business?
Selling a business in the UK typically takes around 12 to 18 months from initial preparation to completion, although some transactions may be quicker or take longer. The timeline depends on business readiness, buyer demand, deal complexity, due diligence and how quickly the legal terms can be agreed.
Preparing accurate financial information and organising key documents in advance can help reduce avoidable delays. Read our complete business sale timeline to understand what happens at each stage.
When is the best time to sell a business?
The best time to sell a business is usually when it is performing strongly, its future growth is clear and you are not under pressure to complete a sale. Buyers are generally more attracted to businesses with rising or stable profits, reliable financial information and credible opportunities for further growth.
Business owners are often in a stronger position when:
- Revenue and profits are growing or consistently strong
- Financial records are accurate and up to date
- Future growth opportunities can be clearly demonstrated
- The business is not overly dependent on the owner
- There is a capable management team in place
- The owner has started preparing well in advance
Market conditions can also affect buyer appetite and valuation. Factors such as sector growth, access to finance and competition between buyers may support stronger deal activity, but preparation and business performance are usually more important than trying to identify a perfect month to sell.
Ultimately, the best time to sell is when both you and the business are ready, and the company can demonstrate sustainable performance and future value to potential buyers.
Use our Exit Readiness Tool to assess how prepared your business is, or read our guide on when to sell your business for further guidance.
Do I need an adviser to sell my business?
You are not legally required to use an adviser to sell your business, but many owners appoint an experienced M&A adviser to help manage the process. An adviser can prepare the business for sale, identify and approach suitable buyers confidentially, coordinate negotiations and support the transaction through due diligence.
The right adviser can also help create competitive tension, protect your time and reduce the risk of avoidable mistakes. Read our guide to choosing the right business sale adviser to understand the different types of support available.
How do I prepare my business for sale?
Preparing a business for sale involves strengthening its financial performance, reducing risk and making sure it can operate successfully without heavy reliance on the owner. Buyers will also expect accurate financial records, clear contracts, organised documentation and evidence of future growth.
Preparation should ideally begin well before approaching the market, giving you time to address weaknesses that could affect value or delay the transaction. Use our Exit Readiness Tool to assess how prepared your business currently is.
How is confidentiality protected during a sale?
Confidentiality is protected through controlled information sharing, anonymised buyer approaches and non-disclosure agreements. Potential buyers usually receive limited information at the start of the process and must sign an NDA before commercially sensitive details are released.
Prospective buyers should be assessed before receiving further information, with documents shared gradually according to their level of interest and credibility. A well-managed process also allows the business owner to retain oversight of who is approached and what information is disclosed.
What documents do I need to sell my business?
The documents needed to sell a business commonly include financial accounts, management information, forecasts, customer and supplier contracts, employment records, tax information and evidence of intellectual property ownership.
Buyers may also request details of property, insurance, legal disputes, regulatory matters and company ownership. Organising this information before due diligence begins can reduce delays and help maintain buyer confidence. Our Business Sale Due Diligence Checklist explains the main information buyers are likely to request.
What’s the quickest way to sell a company?
Selling a business quickly is possible, but speed shouldn’t come at the expense of value or deal security Read more…
What’s the best way to sell a business online?
Yes, you absolutely can sell a business online. Many platforms specialise in connecting business sellers with buyers. Read more…
How can I increase the value of my business before selling?
You may be able to increase the value of your business by improving sustainable profits, developing recurring revenue and reducing reliance on individual customers or the owner. Buyers also value capable management teams, reliable financial reporting, scalable operations and clear opportunities for future growth.
The earlier you identify the factors affecting value, the more time you have to make meaningful improvements. Use our Business Valuation Calculator for an initial indication of value and our Exit Readiness Tool to identify areas that may need attention.