Should I Hire an Investment Bank to Sell My Business?

Investment bankers run the sale process, negotiate on your behalf, and create competitive tension among buyers in order to secure the most bids and best possible sale outcome for your business.

Even experienced business owners who know their industry extremely well may be unaware of or lack access to certain buyers, including private equity firms and family offices, that may be interested in their business.

Nearly 25% of companies formally taken to market fail to sell.¹ Hiring an investment bank can help you avoid common “deal killers” and keep parties at the table when a deal is at risk.

Investment bankers do this for a living and therefore understand how buyers think and negotiate.

Reassure minority shareholders and other stakeholders who may question your decision to sell that you ran a thorough, professional process.

It is critical, especially during a sale process, that your business continues to perform at or above your financial projections. Let the investment bank do the heavy lifting and run the transaction process so that your management team can continue to focus on running the business.

Create unique deal structures and terms, such as earn outs, seller notes, and preferred equity, to bridge the gap between buyer and seller and get a deal done.

Hiring an investment bank signals to potential buyers that you are serious about selling your business and you are bringing sophisticated advisors to the negotiating table. Many buyers prefer to have an investment bank serving as an intermediary to drive a predictable, efficient process.

Investment banks often have access to costly databases and software platforms that will help you better understand the market for your business and “dress up” your business for sales presentations.

In our experience, professional investors like private equity firms nearly always hire investment bankers to sell their portfolio companies – and they buy and sell companies for a living.