The article looks at three areas:
1. Should you hire an intermediary? While plenty of deals get done without an intermediary, business sale transactions are difficult to complete. There are a variety of pitfalls and stumbling blocks to getting a deal over the finish line, and deals can take huge amounts of time and concentration – time that you can probably better spend running your company.
2. What type of intermediary should you hire? There are three general classifications of business intermediary – business brokers, M&A advisors, and investment banks. While each have their place, M&A advisors can often be the best choice for lower middle market companies trying to complete a sale or recapitalization with an expected value of under $100 million.
3. Executing a contract with your intermediary. Regardless of which type of intermediary you select, there are a variety of deal points that are common issues, including duration, exclusivity, fee structure, and tail period. The key point is that you want to make sure that you and your intermediary have goals that are completely aligned.
Please visit the original article for a more thorough treatment of these issues.