4 Steps to Choosing an M&A Advisor

Step 1 – Decide whether to work with an M&A advisor

It is possible to handle your sale on your own. By doing so, you wouldn’t have the pay the M&A fee, which is typically 1 to 10 percent of the total purchase price, depending on the size of the business. However, selling a healthcare business can be complicated and time consuming. Without an M&A advisor, you’d be handling all this work by yourself while still trying to run your business.  In most deals, hiring an M&A advisor usually pays for itself by offering a few key benefits.

First, business owners typically don’t handle many business sales. As a result, you may not properly value your practice or negotiate the best price. An advisor will make sure you get the full amount you deserve for your business. Your M&A advisor will also understand the sales process and will make sure you have the proper documentation in place when you meet with potential buyers. Finally, the M&A advisor will make sure you structure the sale properly with the right buyer so that you don’t run into any unexpected problems at the end of the deal.

Step 2 – Prepare to reach out

It takes about six to nine months to complete the sale of a healthcare business. You should reach out to an advisor at the very start of the process, before you reach out to any prospective buyers. This way you can meet buyers with all your marketing materials in-hand as well as the right company valuation.  The advisor can probably add to the list of prospective buyers.

Step 3 – Start your search

One way to search for an M&A advisor is to ask your current financial advisors, like your accountant, for a referral. They may have worked with advisors before, especially in the healthcare industry. However, finding an M&A advisor on your own is much easier now with the internet. There are websites, like DealZumo, that have full lists of qualified advisors who can help you with your deal. Their online profiles list their business experience, results of past deals, fee structure, and reviews from other clients which can help you track down the right advisor.

Step 4 – Picking the right advisor

Not just any advisor should handle your sale. You should look for an M&A advisor with many years of experience and a proven track record of successfully closing deal. While it helps to work with an advisor with experience in the healthcare industry, this isn’t an absolute requirement. It’s more important that your M&A advisor has a good record of closing deals as there are enough resources for them to learn about the industry.

Above all, you and your M&A advisor should have a strong personality match. You need to be able to have frank conversations with you advisor about your business and your personal goals. If you don’t fully trust the person you’re working with, you may miscommunicate and leave out important information which could hurt your deal.

The sale of your medical practice is too important to be left in the hands of the wrong person. By following this advice, you’ll be able to find a qualified advisor who can make sure your deal goes smoothly.

Wyatt Matas offers a range of engagements to support you during the sale of your business.  Contact chipm@wyattmatas.com to schedule an assessment.