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buy side resources center
When is it appropriate to hire a buy-side broker?
In the business brokerage world, there are several players involved in the process. At the core are the Buyer and the Seller, followed by their respective professional teams such as bankers, attorneys, and CPAs. Business Intermediaries, also known as intermediaries, are responsible for coordinating the deal process.
Intermediaries fall into two main categories: business brokers and merger and acquisition advisors. Business brokers typically handle small and lower middle market businesses, also known as “Main Street” businesses, with enterprise values up to $5 million. On the other hand, M&A advisors oversee transactions for larger businesses, also known as “Wall Street” businesses, above that threshold.
Intermediaries can be industry generalists or industry specialists, and can work for either buyers or sellers, or exclusively for one party. So, when deciding whether to hire a buy-side broker, it depends on the size and complexity of the transaction and the level of expertise required to navigate the process effectively.
How can Aria assist us in acquiring a business?
Aria has established a unique network of deal flow that includes M&A advisors, bankers, and high-quality brokers who are interested in connecting with pre-screened buyers. Our expertise as market investors has helped us develop this network, and we receive the majority of our deal flow from the hundreds of sell-side groups and users we work with.
Rather than having to search through multiple marketplaces and listing sites, we use technology to aggregate publicly available listings from hundreds of sources. This means that we can provide a service that combines exceptional public listings with exclusive engagements. In short, Aria offers a comprehensive solution that saves you time and provides access to a broad range of high-quality opportunities.
How can I increase my chances of success?
Engaging a buyer’s broker can offer you additional services beyond what a Seller’s Broker typically provides, including professional, effective, and confidential transaction handling. One such service is helping you identify the appropriate target acquisition criteria based on your interests, available resources, and prior experience.
In addition, a buyer’s broker can conduct proactive searches for listed companies on your behalf using social networks, professional relationships, and public listing websites. They can also make calls on your behalf to unlisted company owners, analyze and assess potential targets, and negotiate the best possible rate, conditions, and terms for you. They can provide a range of financing options, help with the closing process, and handle any follow-up issues.
By utilizing a buyer’s broker, you can benefit from a range of value-added services that can help increase your chances of success in acquiring the right business.
Does Aria help us find business assets?
For less conventional M&A processes, we have developed creative solutions that provide value to buyers and intermediaries wishing to acquire or exit in a virtual market. Private equity companies, family offices, independent sponsors, conventional search funds, and strategic M&A organizations make up our buy-side members. Investment bankers, M&A consultants, and reputable brokers make up our sell-side members.
How does a buy-side business broker earn their compensation?
Buy-side brokers may offer various service packages that cover all or some aspects of the acquisition process, and they may work on retainer or charge by the hour or project for services such as market research, valuations, analysis, due diligence, negotiation, and funding. Some buy-side brokers do not charge a fee because they receive a share of the success fee from the seller’s broker.
It is advisable to interview several accomplished professional brokers who will work for your best interests and negotiate the best deal on your behalf. Make sure you understand your broker’s role, responsibilities, and the services they will provide, as well as how they will be compensated. With the right intermediary on your side, you can increase your chances of a successful acquisition.
What steps can we take to avoid problems and setbacks?
At Aria, our approach is to carefully evaluate potential buyers to ensure that we don’t waste your time with individuals who are not qualified or capable of acquiring your business. We focus on presenting you with the best options available and filtering out distractions, so that you can avoid being overwhelmed and pulled in too many directions during the sale process.
It’s important to remember that you’ll still need to run your business while also dealing with the added responsibility of selling it. We understand the challenges you face, which is why we’re committed to connecting you only with buyers who are truly ready, willing, and able to acquire your business.
We use unique and customized strategies for each business we work with, and some of our processes and procedures are kept confidential.
