Ever since AEPIC Partners was first founded and the idea went from paper to real life we have set ourselves up to be recognized in the industry as advisors.
Someone who stands by businesses and business people to help them make the best decisions for themselves and their current (or future) businesses.
This market is not a black and white shape.
Some concepts get mistaken and people may not be entirely sure of how M&A Advisors are different from business brokers or aggregators.
To clear things up for you we decided to write a blog post and clarify you on what’s a M&A Advisor, how it differentiates from other professionals, and what this can mean to help your business.
How will any of this help you
For a better understanding of all concepts, we’ll introduce you to day to day examples as a means of examples.
Let’s start right away.
You know how when you want to buy a house you contact a realtor?
Well, in terms of selling or buying a business, some companies act as “realtors” as well.
They are people who are experts in their fields and in what they do and that ultimately plays in your favor.
You get a better house for a fairer price, or a better deal on a car, or the best possible business deal.
Knowing which type of professional to choose will help you conduct business transactions and handle business proposals.
Regardless of your wanting to buy or sell a business right away or in a few years time you should always keep in mind the type of professional that will best suit your needs.
What is a M&A Advisor
We believe Divestopedia.com has a great definition on what a M&A Advisor does.
Merger and acquisition (M&A) advisors “provide guidance to other companies that intend to buy, sell or restructure their firms.”
In simpler terms, these professionals will guide you and your business in corporate transactions.
This means assisting you in:
- Calculating the fair valuation for the eCommerce you own;
- Marketing the business to prospective, qualified buyers;
- Selling your business for the highest possible price and ensuring you don’t sell for a below the market value;
- Ensuring that the sale transaction goes through, even if/when complications may come by;
A M&A Advisor is a person that treats a business as if it were his own. In football terms, you can say they get their shirts wet and their caps on.
These professionals often charge a fee based on the transaction value. Meaning they’ll really try to sell for the highest possible price without undermining the deal.
What is a business broker
Compared to a M&A Advisor, a business broker will work in smaller leagues.
A business broker, unlike a M&A Advisor, is the best professional for smaller businesses and smaller transactions (below 1M for example).
They are much more like a realtor in terms of handling simpler deals.
You can see many business brokers working with small, local shops.
Like M&A Advisors, business brokers also work on a commission fee percentage.
What is an aggregator
An aggregator is a lot different from a business broker or advisor.
What an aggregator does is combine huge loads of data in a sort of network to facilitate the buying and selling or businesses within that network.
The aggregator acts on its own and by its own name.
A good example of an aggregator is Amazon itself. It acts on its own, under its own name, while recurring to other sellers to ensure there’s a product to sell.
What is AEPIC Partners
AEPIC Partners acts as a M&A Advisor in the eCommerce business area.
What we do is help eCommerce owners sell their current businesses for a fair market price to buyers who will continue the legacy of the brand created by the first eCommerce owner.
There are loads of benefits in selling your business with a M&A Advisor like AEPIC Partners but we had to choose just the one, we’d definitely mention confidentiality and transparency.
We’ve mentioned in another blog post that the selling of a business is something that needs to be handled with caution and that confidentiality and secrecy are key.
You never know when something may backfire and break a deal. So confidentiality is a must and a M&A Advisor will guarantee you that.
Moreover, transparency throughout the process is mandatory to ensure all parties are 100% confident with the business they’re making.
This means taking the time to brief the seller on all aspects of what’s happening and guaranteeing we’re all on the same page.
Why AEPIC Partners is not a broker or aggregator
An aggregators’ business model is based on a network and its potential.
We don’t want to base our efforts on selling your business in a sole network and leave out many other potential good buyers.
Our focus is to find the best deal for sellers and provide them with a happy, stress free exit strategy for their business.
Not only is AEPIC Partners not interested in smaller deals, we also prefer to work with a few clients at a time.
This is yet another benefit of working with a M&A Advisor: you get premium advisory and a partner that will be right by your side with your business in their minds. Nothing else matters.
Depending on the deal you want to attract these 3 business models and types of professionals will be more helpful (or not).
In a short conclusion and in summary:
- If you want a partner alongside you;
- If your business is valued at 500k or more;
- If you want to sell your business the right way and to a buyer that cares;
Then your best pick is definitely a M&A Advisor.
On the other hand, if you intend on only selling, regardless of what’s going to happen to your brand or business, and your valuation is a bit lower, perhaps a business broker is the best fit for you.
If you want to find out the valuation of your business, click here and try our free valuation tool.