M&A  Advisor


Business Broker or M&A Advisor?

Picking the Right Intermediary for the Sale of Your Business

You are ready to sell your business. You ask around and find that some businesses are sold by Business Brokers and some by Mid-market M&A Advisors. The difference in intermediaries can make difference of 20% to 40% or more in what you can take away in many situations. So, picking the right intermediary can have a major impact on your nest egg. Which one of these is right intermediary for selling your business? Who should you use?

The following table shows the applicability of these intermediaries based on various metrics.


Business Broker

Mid Market M&A Advisor

Size Of Business

Less than $2M

Less than 10 employees

$2M - $100M

Tens or Hundreds of employees

Type of Business

Mostly Retail (aka “Main Street”)

Distributors, Manufacturers, Healthcare, Technology, Large retail, B2B companies

Typical Representation

Seller & Buyer (Dual Agent)

Either Buyer Or Seller

Typical Acquirers


Corporations, PEGs

Typical Sale Type


Asset or Stock or Mixed


Real Estate (RE)

Securities & RE

Pre Sale Planning


Yes – Extensive

Business Valuation

Street Multiple / Rules of Thumb

Strategic Value, DCF, Dilution

Transaction  Complexity



Size of contracts

A few pages

Tens of pages

Typical Fee Structure


Double Lehman / Negotiated

Upfront Fees



Typical Multiples

2-3x DCF


Variability In Value



The deciding factor in selecting the right intermediary is type of business you have. For small companies with revenues under $2 million and for large companies with revenues over $100 million, the choices are obvious.

If your business is a small retail or service business and there is typically no strategic value in the business, any competent business broker may be able to get the job done. However, if you expect the deal size to be higher than $2M, your interests are likely to better served if you choose an intermediary to represent you exclusively (i.e. not a dual agent).

An M&A Advisor is the right choice if your business is larger, complex or has a high component of product or service specialization. A competent M&A Advisor can unlock the value in your business, represent you exclusively, and get your business the higher value it deserves. This is extremely important if your business has untapped strategic value or has intellectual property subject to a broad interpretation of value in the marketplace.

Chak Reddy is a Mergers and Acquisitions Advisor with Elite Mergers & Acquisitions, Inc. Elite Mergers & Acquisitions specializes in selling businesses with revenues between $5 million and $100 million - Businesses too large for business brokers to adequately handle but too small for the national M&A firms. Mr. Reddy is a business M&A and Marketing expert, and is the chief deal maker at Elite. You can reach Mr. Reddy at 916-220-3052 or by email at creddy@elitemanda.com .

For assistance with selling or recapitalizing your mid market company, contact:

Chakradher (Chak) Reddy

Elite Mergers & Acquisitions Inc

creddy@EliteMandA.com        www.EliteMandA.com

2260 E. Bidwell St #1114, Folsom CA 95630

Ph: 800-335-3068; Fax: 888-502-3817


Disclaimer: This document is for informational purpose only and should not be construed as tax or legal advice. Please contact your CPA/attorney for advice on your specific situation.