If you are seeking to sell your business, buy someone’s business or merge with any other business, then it becomes very important to opt for the help of a corporate advisory M&A firm. These firms contribute to play a major role in properly guiding you throughout the process.
Also, they are known to be experts in this particular field. But, primarily the service providers for such business-level transactions are classified into two major types such as M&A advisors and business brokers.
Both of the options can be very confusing to choose from as they operate in the same field with more or less similar characteristics. But, in this regard, there are some of the major differences which you should know about. All the differences will help you to come up with a good choice.
Differences To Know About
In case, you are looking forward to opting for a corporate advisory M&A, then you should first understand the differences existing between business brokers and M&A advisors which are mentioned in this section:
- The business brokers generally operate on a local, small or regional scale. In this case, the transactions usually involve single stand-alone businesses. On the other hand, M&A advisors focus to work on a larger national or sometimes even global scale.
Other than that, the transactions, in the case of M&A advisors, the transactions may involve complex business mergers. In some of the cases, it may even include sales that span different locations.
- The size of the deal which a business broker works with specifically ranges up to $1 – $2 million. On the other hand, the M&A advisors are involved in dealing with a multi-million dollar.
- Both of the service providers specifically have different client profiles. The clients of the business brokers involve individuals and small firms.
On the other hand, the M&A advisors are involved in catering to the unique needs of large firms, organizations, governments, large-scale projects, etc.
- The client profile and also the scope is considered to be different for M&A advisors and business brokers. So, they should possess different skill sets to facilitate their services.
- Business brokers are involved in offering services that are easy to evaluate and centered around the establishments.
On the other hand, the M&A advisors tend to provide services around complex transactions. Due to this particular reason, this may be very difficult to evaluate.
- The assistance provided by a business broker is considered to be limited in scope. But, the M&A advisors focus on working strategically with the client.
- Talking about the business brokers, they mainly work on a commission of the deal value. Whereas, the corporate advisory M&A firm focuses to work on percentage payouts.
So, the above-discussed ones are considered to be some of the most important differences between the corporate advisory M&A firms as well as the business brokers which you should know about.
A thorough evaluation is very important for choosing the right advisor for your specific needs.