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.
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Welcome to the 4th 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.
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| Engagement Letter Details | |
| Retainer Required | Yes |
| Retainer Amount | $7,500 |
| Retainer Applied to Success Fee | Yes |
| Payment Terms | Upfront |
| Engagement Duration | 9 months |
| Success Fee | 3% of a debt raise, 5% of an equity raise |
| Minimum Fee | Yes - $180,000 |
| Exclusive | No |
| Special Terms | |
| Non-Exclusive: The company is allowed to engage other advisors simultaneously without exclusivity. However, it includes a non-circumvention clause for nine months post-termination, requiring payment if transactions involve parties introduced by the advisor. | |
| Termination Clause: Either party can terminate with 10 days' notice after one month. However, the advisor retains the right to fees for transactions with introduced parties within nine months of termination. | |
Behind The Win:
As part of every Advisor Finder process, we ask the business owner or management team to provide a rationale for why they hired a given advisor. The following attributes contributed to the selection of the Winning M&A Advisor:
- Industry-Specific Expertise: Since 2020, the advisor has represented 13 apparel, accessory, and DTC brands, aligning with the company’s market focus.
- Specialized Network & Knowledge: The advisor’s strong network of LMM funders and deep understanding of e-commerce and Amazon business models made them uniquely suited for the engagement.
- Track Record: The firm’s principals have over 18 years of experience, completing transactions totaling $15+ billion in aggregate value.
- Favorable Terms: Non-exclusivity and a flexible termination clause offered greater control and flexibility.
Looking to exit your business? Find an advisor you can trust.
| The Business | |
| Timeline | |
| Reaches Out To Axial | 5/15/2024 |
| Begins Interviewing M&A Advisors | 5/21/2024 |
| Signs The Winning Engagement Letter | 9/17/2024 |
| Business Data | |
| Industry | Consumer Goods |
| Revenue Range | $35M - $40M |
| EBITDA Range | $3M - $5M |
| Desired Transaction | |
| Transaction Type | Capital Raise |
| Reason For Transaction | Refinance debt & support growing demand |
| Transaction Timeline | <6 months |
| Advisor Recommendation #1 | |
| Firm Type | M&A Advisor |
| Generalist & Specialist | Specialist |
| Deals Marketed on Axial L12 | 10 |
| Deals Marketed on Axial All-Time | 34 |
| Average Revenue of Deals | $10,288,205 |
| Average EBITDA of Deals | $1,832,636 |
| Advisor Recommendation #2 | |
| Firm Type | Investment Bank |
| Generalist & Specialist | Generalist |
| Deals Marketed on Axial L12 | 29 |
| Deals Marketed on Axial All-Time | 192 |
| Average Revenue of Deals | $15,976,859 |
| Average EBITDA of Deals | $2,997,174 |
| Advisor Recommendation #3 | |
| Firm Type | Investment Bank |
| Generalist & Specialist | Generalist |
| Deals Marketed on Axial L12 | 11 |
| Deals Marketed on Axial All-Time | 41 |
| Average Revenue of Deals | $19,590,244 |
| Average EBITDA of Deals | $2,997,174 |
The Winning M&A Advisor – 1, 2 or 3?
Recommendation #3
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