Preparing a Business for Sale in 3 Steps
We've created a 3-step guide to help prepare a business for sale, including exit planning, assembling your deal team, and starting the M&A process.
Welcome to the 2nd issue of the Winning M&A Advisor, the Axial publication that anonymously unpacks data, fees, and terms from the winning M&A engagement letters of professional M&A advisors using Axial to win new sell-side business.
We are excited to continue surfacing meaningful data and best practices from the top M&A advisors and capital partners transacting in the American lower middle market.
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Engagement Letter Details | |
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Retainer Required | No |
Retainer Amount | n/a |
Retainer Applied to Success Fee | n/a |
Engagement Duration | 12 months |
Success Fee | 5% flat fee on total consideration |
Minimum Fee | No |
Special Terms | |
In the event the business is sold to a buyer during the term of the agreement without the assistant of the advisory firm, the advisory firm will receive the same fee as to which it would otherwise be entitled if sold with the assistance of the advisory firm. |
As part of every Advisor Finder process, we ask business owners to provide a rationale for why they hired a given advisor. The following attributes contributed to the business owner selecting the Winning M&A Advisor:
The Business Owner | |
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Timeline | |
Owner Reaches Out To Axial | October 4th, 2023 |
Owner Begins Interviewing M&A Advisors | October 17th, 2023 |
Owner Signs The Winning Engagement Letter | December 12th, 2023 |
Owner | |
Age Range | 40 - 50 |
Tenure With Business | < 10 years |
Business Data | |
Industry | Transportation |
Revenue Range | $4M - $5M |
EBITDA Range | $2.5M - $3M |
Desired Transaction | |
Change of Ownership | Targeting 100% sale |
Reason For Transaction | Use proceeds from sale to invest in new ventures |
Advisor Recommendation #1 | |
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Firm Type | Investment Bank |
Generalist / Specialist | Industry Generalist |
Deals Marketed on Axial L12 | 13 |
Deals Marketed on Axial All-Time | 166 |
Average Revenue of Deals | $23,126,070 |
Average EBITDA of Deals | $3,603,840 |
Advisor Recommendation #2 | |
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Firm Type | M&A Advisory Firm |
Generalist / Specialist | Industry Specialist |
Deals Marketed on Axial L12 | 2 |
Deals Marketed on Axial All-Time | 7 |
Average Revenue of Deals | $12,774,285 |
Average EBITDA of Deals | $2,821,428 |
Advisor Recommendation #3 | |
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Firm Type | Investment Bank |
Generalist / Specialist | Industry Generalist |
Deals Marketed on Axial L12 | 6 |
Deals Marketed on Axial All-Time | 24 |
Average Revenue of Deals | $21,325,875 |
Average EBITDA of Deals | $3,103,000 |