Because it is a significant challenge for many to secure a successful deal, finding an M&A advisor with the right set of tools and skillset to guide you on your sale process is essential to securing a lucrative deal. As American investment banker, Bruce Wasserstein, once said, “Implementing a deal is a blend of psychology, business judgment, and technical dexterity.” An M&A Advisor needs to check all the boxes to ensure your deal will be smooth sailing. Here are five qualities to watch out for in a prospective M&A advisor that might help you determine who to consult for your business’s future.
Privacy and confidentiality are essential to selling any staffing and recruiting firm. One key element for a successful M&A advisor is their ability to manage your privacy and a buyer’s privacy. Any information that your company has not yet announced should be kept under wraps. An advisor that strictly imposes an NDA instead of using a blanket NDA offers real protection to buyers and sellers during the process. This ensures that no information that’s not warranted by either party has no chance of making its way out of the select number of people involved in the process. The right M&A advisor minimizes the risk of any sensitive information from your staffing firm circulating.
Discretion is also important to ensure both employees and customers don’t hear that your staffing company is for sale before the time you intend to make your announcement. This may result in panic and clients deciding to pull out of contracts or employees leaving. Additionally, an M&A Advisor who understands the market can easily distinguish shoppers from legitimate buyers, this makes it easier for them to distinguish who to reveal information to.
Expertise in the Staffing & Recruiting Industry
For your staffing firm to grow through an M&A transaction, your advisor must have a clear understanding of your specific industry. In today's climate, it is of utmost importance for your M&A advisor to be fully qualified and experienced in the industry you serve. This includes your company’s niche, the market, competition, geographical region, and many more factors.
M&A Advisors who have worked in the Staffing & Recruiting industry are privy to historical deals of prospective buyers. Having this knowledge can be used as leverage when negotiating. Not only must they have the set of skills to pitch and negotiate a good deal for you and your staffing firm, but also have the financial acumen behind their expertise to understand your staffing company’s finances, and further, how this will affect your exiting strategy.
The true test of an effective M&A advisor is his or her ability to foster a project and its meticulous elements throughout the entire sale process. This includes planning, coordinating, keeping all parties on track, overseeing jobs that ensure your staffing firm stays in top shape, as well as making sure that your the deal process adheres to its timeline. A good M&A advisor and his or her executive team must be able to prioritize what needs to be done behind the scenes, and how to seamlessly shift between a few major tasks at a time.
M&A transactions are complex and require a great deal of data and financials, knowledge of valuation techniques, the ability to market your company, and many other aspects. An M&A advisor that can handle a plethora of details with accuracy is crucial to any lucrative deal. An effective advisor must also be able to collaborate, listen to others, and utilize all resources that have been given. A highly analytical and collaborative M&A advisor provides your staffing firm with outstanding project management that will lead to the most lucrative deal you will get for your staffing firm.
M&A professionals are no strangers to rejection and because of this, it enables successful advisors to develop systems against experiences during the process that may be overwhelming to those who aren’t adept at dealing with a large amount of pressure. Whether it comes from the buy-side or sell-side of the process, It is critical for advisors to have a great deal of emotional strength to bounce back and defend the deal, and eventually close it in the best possible scenario.
Successful M&A advisors have a compassionate understanding of you and your staffing firm. Advisors should understand the work you have put in throughout your entire time building your staffing company, as well as the fact that selling your staffing firm can be a personal journey. Having an advisor that mitigates those sets of uncertainties and doubts can be key to a smooth-running deal process.
A well-rounded understanding of your needs and the needs of your staffing firm is pertinent in a successful sale process. It’s important for your M&A advisor to be able to understand your motivation for selling, as well as the goals you plan to set for the future of your business. This facilitates better communication and the ability to bring the right set of people together. The willingness to see everything from the seller’s perspective throughout the entire journey is crucial for a lucrative deal.
The M&A process can be complex and requires out-of-the-box solutions to the problems you’ll face during the sale of your staffing company. More often than not, transactions can get mired by bureaucracy and unforeseen circumstances, to which only a creative M&A Advisor will be able to rebound with a creative deal structure.
Whoever you decide to help you with the sale of your staffing firm should be in command, and understand how to be a leader. As a consultant during one of your staffing company’s most important periods, you want a confident and valuable partner. During the sale process, you will likely encounter difficult choices you will have to make, and with a confident leader by your side, you have the guidance to make the right choices during these monumental points in the sale process. A strong, effective M&A advisor will be honest with you and set realistic expectations. Having an advisor that can ground you is a critical asset. An M&A Advisor that is able to strive for the best, while remaining efficient and practical is invaluable.
Before planning to sell, it’s essential you consider these qualities before deciding on who you would like to join you on your staffing firm’s journey through the sale process. Making the right decision may determine how smoothly the sale of your staffing company progresses.