The Top 50 Lower Middle Market Technology Investors & M&A Advisors [2025]
Technology remains a steady presence in the lower middle market, representing ~13% of deals brought to market via Axial over…
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Welcome to the latest 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 |
| Up Front Amount | $5,000 |
| Payment Terms | $2,500/month (capped at $50,000) |
| Engagement Duration | Until terminated by either party with a 30-day written notice. |
| Exclusive | Yes |
| Minimum Fee | $150,000 |
| Retainer Applied to Success Fee | Yes |
| Success Fee | Based on the total transaction value, calculated below. |
| $0 - $2M: 10% | |
| $2M - $3M: 8% | |
| $3M - $4M: 7% | |
| $4M - $5M: 6% | |
| $5M - $25M: 5% | |
| Above $25M: 4% | |
| Special Terms | |
| Compensation: The advisor is entitled to its success fee regardless of who identifies the buyer (the advisor, the company, an employee, or a third party). | |
| Tail-Period: The advisor is entitled to its success fee if a transaction is completed within 24 months after termination, involving a party it introduced during the engagement. | |
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: They are a specialist firm focusing exclusively on representing owners of healthcare companies in sales and capital raises.
- Flexible Engagement Duration: The agreement remains open-ended until terminated by either party (with a 30-day written notice) or upon a successful sale, providing adaptability and control over the process.
- Engagement Structure: The up front retainer fee was lower than that of other interviewed advisors, with all fees credited toward the success fee, reducing upfront costs and aligning incentives.
- Third-Party Valuation: The advisor includes a third-party valuation as part of its process, minimizing upfront financial burdens for the business owner and ensuring an objective assessment of the company’s worth.
Looking to exit your business? Find an advisor you can trust.
| The Business | |
| Timeline | |
| Reaches Out To Axial | 6/25/2024 |
| Begins Interviewing M&A Advisors | 7/8/2024 |
| Signs The Winning Engagement Letter | 8/20/2024 |
| Business Data | |
| Industry | Healthcare |
| Revenue Range | $5M - $6M |
| EBITDA Range | $1.5M - $2M |
| Desired Transaction | |
| Transaction Type | Change of control (sell over 50%) |
| Reason For Transaction | Owner seeking a private equity sale to execute a rollup strategy. |
| Transaction Timeline | 6-12 months |
| Advisor Recommendation #1 | |
| Firm Type | Investment Bank |
| Generalist / Specialist | Generalist |
| Deals Marketed on Axial L12 | 29 |
| Deals Marketed on Axial All-Time | 375 |
| Average Revenue of Deals | $12,764,005 |
| Average EBITDA of Deals | $1,640,174 |
| Advisor Recommendation #2 | |
| Firm Type | M&A Advisory Firm |
| Generalist / Specialist | Specialist |
| Deals Marketed on Axial L12 | 14 |
| Deals Marketed on Axial All-Time | 137 |
| Average Revenue of Deals | $10,893,432 |
| Average EBITDA of Deals | $1,819,637 |
| Advisor Recommendation #3 | |
| Firm Type | Investment Bank |
| Generalist / Specialist | Specialist |
| Deals Marketed on Axial L12 | 3 |
| Deals Marketed on Axial All-Time | 10 |
| Average Revenue of Deals | $12,597,125 |
| Average EBITDA of Deals | $1,716,500 |
The Winning M&A Advisor – 1, 2 or 3?
Recommendation #2
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