July 7, 2015 HMA Website

Why to Use a M&A Intermediary: Part 1

The purchase or sale of a business is possibly the most important business transaction you will ever undertake. Whether you’re buying or selling, an M&A intermediary can bring many skills to the table that will add enormously to the value of the transaction. Consider the “short list” of benefits a skilled professional brings to the mix:

  • Increasing the Pool — M&A experts cast a wide net, bringing more qualified prospects into consideration than you could on your own.
  • Separating the Wheat From the Chaff — Professional intermediaries can help you winnow out the lookers from the players.
  • Creating New Combinations — We can help bring together players who will add a new dimension to the deal.
  • Freeing Your Creative Energies — If you’re distracted by the M&A dance, your business can suffer. Hiring an intermediary allows you to concentrate on what you do best-running your company.
  • Keeping Rational — Relying on a third party prevents emotional, unproductive conversations that can derail the process when you negotiate on your own. A good M&A intermediary will help you keep an open mind to make clear-headed decisions.

Why Doing-it-Yourself Just Doesn’t Do it
Ask business owners who have brokered their own M&A deals whether they felt they got a good deal, and you’ll often get responses that range from: “I guess so,” to “It was a complete disaster!”

Often, these very capable business people, who would never buy or sell a home without the services of a real estate professional, fail to put the same thought into their business transaction. Like a realtor®, an M&A intermediary can usually broker a better deal than you could, more than offsetting any fees you pay.

While we’re on the subject of fees, the next question we usually hear is, “OK, I see your point, but what exactly do I get for my money?” In Part Two, we’ll present an overview of what you can expect once you enter into an agreement with an M&A intermediary. From finding prospects, to creating marketing materials, to maintaining relationships throughout the process, an experienced M&A intermediary will offer you a wide range of services with one object in mind: closing the deal to your benefit. (Can’t wait to find out? Call us today for the rest of the story!)

What Should You Look for in a Mergers & Acquisition Intermediary?
Full disclosure again: we feel that Marx Group Advisors is uniquely qualified to complete M&A transactions in the commercial vehicle and automotive aftermarket. We have the breadth and depth of experience in both the M&A and aftermarket arenas. Founder Tom Marx has over 25 years serving the automotive and heavy-duty aftermarket as a marketing, sales and management consultant. Co-founder Paul Cooperstein brings over 25 years of experience in venture capital and M&A transactions.

As experienced pros, we are well connected in the aftermarket and speak its language, which enhances our ability to access and talk to potential participants. We are also adept at identifying and calling on candidates who may have not have yet expressed an interest in participating in a purchase or sale.

Our clients will attest that MGA delivers an experienced, intelligent delivery of services in the most confidential manner. Feel free to call and speak with one of our founders to find out how we can support you with a successful M&A transaction.