What is sell-side M&A

There are 2 main parties in the field of takeovers and mergers: the seller and the buyer. Everything is clear on the buyer’s side, but not many people understand how to explain the seller’s actions. If a buyer wants to acquire an additional company, complete a production cycle, or increase its market share, the motivation of sellers is rarely talked about.

But they are also active in the marketplace and need to understand many processes. To organize them correctly you need to hire an M&A sell side advisory and ValleyBiggs agency is ready to help with this. Of course, such an intermediary will take care of most of the issues, but also the seller should understand the basics of such processes on his own. Let’s take a closer look at the sell-side M&A process.

Who are the sell-side representatives

Before you start preparing for a sell-side M&A process you need to understand who the sellers are and why their role is important. The sell-side representatives are the owners of the company who make management decisions on how to run the business. Their task will be to find a buyer who can offer the most favorable deal for the company.

In other words, their main motivation is to get as much consideration for their business as possible. To do this, they prepare the necessary data about the company’s potential, communicate the information to potential buyers, and evaluate their assets in the market.

To make these processes better organized they should hire a sell-side M&A advisor. Such companies will be able to prepare most of these processes and even find the right buyer.

The role of the sell-side in transactions

Drawing a comparison in responsibilities between sell-side vs. buy-side M&A it can be seen that intermediaries for sellers are required to:

• prepare promotional offers;
• attract buyers;
• analyze investors;
• find the best offer;
• advise investors who are interested in the deal;
• advise on all stages of the transaction;
• provide a valuation of the seller’s company;
• accompany the seller at the time of the transaction.

There are a lot of duties and conditionally in investment banking in sell-side M&A, the list of duties of an intermediary may be even wider. But in general, these are the functions they should fulfill.

Tips on choosing reliable intermediaries for the seller

When looking for intermediaries you should pay attention not only to sell-side M&A fees. First of all, analyze:

• their qualifications;
• experience;
• the percentage of successful transactions;
• the responsibilities that the company will assume.

Each of these points is important. If the intermediary is a brand new company, it is far from certain that the qualifications of its employees will allow you to quickly organize a sell-side M&A timeline and stick to it. Experience can be assessed by the recommendations you will receive regarding cooperation with the intermediary.

The percentage of successful transactions is probably the most important of the points. It shows the real results of the intermediary and will allow you to understand whether it is worth cooperating with him or not. This indicator will allow you to understand whether the intermediary is ready for negotiating a sell-side M&A deal and will be able to achieve the result you need.

The responsibilities that the mediator will take on will allow you to assess the economic necessity of the mediator. If the owner sees an economic benefit from such cooperation, the mediator will be able to get to work. But it is also important to assess the time costs because saving the client’s time is also a huge advantage.

Where to look for reliable intermediaries

If you need a reliable intermediary, Valley Biggs is the company to turn to. Our staff has been closing favorable deals for our clients for a decent amount of time. We can find a buyer for your business quickly and let you not worry about finding the best offer. We are prepared to provide multiple offers at once and present your business to the buyer. With us, the transaction will go quickly, smoothly, and favorably for you. Contact our specialists for advice in any convenient way.