Middle Market M & A, 2nd Edition

CHAPTER 6Practice Management

M&A advisory practices have evolved over the years and have become distinct firms with specialized skill sets and processes. Many of these practices were created as divisions or spinoffs of other related firms such as accounting, valuation, legal, or industry consultants. Others migrated upstream from business brokerage or downstream from larger investment banking operations. Today, the best and most sustainable M&A advisory practices that serve the middle market operate with devoted staff, technology, and specialized skills aligned to the needs of these sellers and buyers.

Clients in the middle market may initially reach out to the professionals they routinely engage, like their attorney or accountant, to assist with their transactional needs. Frequently clients quickly recognize that they need assistance from a professional who specializes in these types of transactions, rather than one who might have tangential experience. A quality M&A advisory practice will be able to act as the financial strategist, the marketer of the business, the deal finder, and, when advising the buyer, the leader of due diligence. Some of the less obvious roles that M&A advisors play include consulting to help improve business performance and prepare a company for sale, offering integration assistance in combining two businesses, providing education, and tempering valuation expectations, or acting as financial advisor to view the business within the context of the seller's ...