How M&A Advisors Increase Value

A recent study found that “private sellers receive significantly higher acquisition premiums when they retain M&A advisors.” The higher acquisition price derives from an M&A advisor’s ability to run smoother processes with better buyer lists. Financial intermediaries have “greater economies of specialization and information acquisition, and have lower search costs than their clients.” A smooth process means that the M&A advisor is particularly adept at keeping multiple, relevant bidders engaged simultaneously. This concurrent interest from several interested parties is critical to obtaining the best sale price.