How to Find the Right M&A Advisor

A business partner of mine always said, "Selling a business is more a life decision than a business one."

It's true—selling a business is one of the most significant decisions an entrepreneur will make, and having the right M&A advisor by your side can make all the difference (research shows a 25% better outcome).

A skilled advisor guides you through the intricate process of selling your company, from navigating complex negotiations to maximizing your sale price.

The challenge lies in finding a great M&A advisor among the many options. Here's a comprehensive guide to help you choose an advisor who aligns with your goals and ensures a successful exit.

Why You Need an M&A Advisor

As discussed in our blog, How to Sell a Business with $500K of EBITDA or more, an M&A advisor brings expertise, industry connections, and negotiation skills to the table. They help business owners avoid common pitfalls, streamline the sales process, and secure optimal deal terms. Here’s why working with an advisor is essential:

• Market Knowledge: Advisors understand industry trends and buyer behavior, ensuring your business is positioned effectively in the market.

• Valuation Expertise: They provide accurate valuations based on EBITDA multiples and comparable transactions, helping you avoid over- or undervaluation.

• Negotiation Skills: Advisors negotiate on your behalf, securing favorable terms while protecting your interests.

• Access to Buyers: With established networks, advisors connect you with qualified buyers who align with your business’s value proposition.

Key Traits to Look for in an M&A Advisor

Choosing the right advisor requires careful consideration. Look for these traits:

1. Industry Expertise

Your advisor should have experience in your industry. Whether you're selling a tech company, home services business, or digital marketing agency, their knowledge of market trends and buyer expectations is crucial for maximizing value.

• Demonstrated knowledge of industry-specific valuation metrics (standard EBITDA multiple, deal terms, connections to PE groups buying companies in the sector, etc.)

• Understanding of industry-specific regulatory requirements

• Experience with similar business models and revenue sizes

• Active participation in industry events and associations

2. Proven Track Record

Ask for case studies and references from past clients. An advisor with a history of successful transactions demonstrates their ability to deliver results.

• Success rate in closing deals within your target price range

• Average time to close comparable transactions

• References from business owners in similar industries

• Documented history of exceeding client expectations

For example, you can review a list of Breakwater’s case studies here.

3. Strong Network of Buyers and Professionals

Top M&A advisors maintain extensive networks of buyers—including private equity groups, strategic acquirers, and search funds. They also cultivate relationships with key professionals like bankers, M&A lawyers, and accountants who bring vital deal experience to help close transactions.

Through their buyer networks, advisors create competitive bidding environments that secure better deal terms for sellers.

Key professional relationships that support a successful business sale include:

• Direct relationships with qualified buyers and investors

• Access to industry-specific private equity firms

• Connections with complementary service providers (attorneys, accountants)

• Regular deal flow demonstrating active market presence

4. Transparent Fee Structure

Understand how your advisor charges—whether through a flat fee, percentage of sale price, retainer, or a combination—and ensure their incentives align with yours. At Breakwater M&A, for example, we use a mix of retainers and success fees. About 90% of our fees are tied to successfully selling your business, which ensures our interests are aligned.

Some other firms, however, charge $50,000–$100,000 in non-refundable fees before presenting you to buyers—an approach that may not align with your goals.

Make sure to get clarity on the following before signing an engagement agreement:

• Clear breakdown of all fees and expenses

• Performance-based compensation structure

• No hidden costs or surprise charges

• Alignment with industry standard fee ranges

5. Communication Skills

Your advisor should be accessible, responsive, and able to explain complex processes clearly. Since selling a business can be stressful, clear communication is essential for easing concerns throughout the process.

• Regular progress updates and scheduled meetings

• Ability to explain complex terms in plain language

• Quick response times to questions and concerns

• Professional communication with all stakeholders

One of the biggest pieces of feedback we receive from past clients is our exceptional communication. Zac Roff of Valkyrian Canning shared his thoughts about how good communication impacted his business sale:

The other piece that really set it apart was the communication... it really felt like because I was running a small business and trying to sell it, that they were on my side to make sure that I wasn’t wasting my time. -Zac Roff

Essential Questions to Ask Before Hiring an M&A Advisor

To ensure you're selecting the right advisor for your business sale, here’s an exhaustive list of questions to ask during your evaluation process of an M&A firm:

Experience & Expertise

1. What specific industries do you specialize in, and how many deals have you completed in each?

2. Can you provide detailed case studies of businesses similar to mine (i.e. in the $2M-$20M revenue range)?

3. What is your success rate in closing deals, and what's your average time to close?

4. How long have you been working in M&A, and what's your professional background?

Process & Methodology

1. What is your process for determining business valuation?

2. How do you identify and approach potential buyers?

3. What strategies do you use to create competitive tension among buyers?

4. How do you protect confidentiality during the sale process?

5. What's your approach to negotiating deal terms and structure?

Support & Resources

1. What size is your team, and who will be directly involved in my deal?

2. How do you prepare businesses for due diligence?

3. What professional networks and buyer databases do you have access to?

4. How do you handle post-sale integration and transition support?

Communication & Fees

1. What is your complete fee structure, including all potential costs and expenses?

2. How frequently will we communicate, and what's your typical response time?

3. What reporting and updates can I expect throughout the process?

4. Do you have any potential conflicts of interest I should know about?

Risk Management

1. How do you handle challenging situations or deal breakers?

2. Can you provide references from past clients who faced similar challenges?

Want to know Breakwater’s answers to these questions? Check out our FAQ page here.

Common Misconceptions About M&A Advisors

Many business owners hesitate to hire advisors due to misconceptions about their role or value:

1. Advisors Are Too Expensive

While fees may seem high initially, advisors often add up to 25% more value to the sale price through competitive bidding and strategic negotiations—far outweighing their cost.

Average ROI from advisor fees shows significant returns through:

• Higher valuation multiples from competitive bidding

• Better structured earnouts and contingent payments

• Improved working capital terms

• More favorable tax treatment through deal structuring

2. I Can Sell My Business Alone

Selling independently may save fees but risks undervaluing your business or accepting unfavorable terms due to lack of experience or connections in the market.

Common pitfalls of selling without an advisor:

• Limited access to qualified buyers reduces competitive tension

• Inexperience in negotiating complex deal terms or making mistakes by making emotional decisions

• Risk of confidentiality breaches during the process

• Difficulty managing the sale while running daily operations

3. All Advisors Are the Same

Not all advisors specialize in mid-market businesses or have experience with companies in specific industries like tech or home services—choose one tailored to your needs.

Key differentiators between advisors:

• Industry-specific transaction experience and expertise

• Size of their buyer network and deal flow

• Quality of marketing materials and process management

• Level of personal attention and senior-level involvement

The Breakwater Advantage

Breakwater M&A specializes in helping entrepreneurs sell businesses in the $2M-$20M revenue range with $350K+ EBITDA.

Here’s what sets us apart:

• Industry Expertise: We’ve successfully sold businesses across tech, home services, agencies, and other high-margin sectors.

• Aligned Incentives: Our fee structure motivates us to maximize your sale price. When you get paid, we get paid.

• Proven Results: Our clients consistently achieve higher valuations and smoother exits. Read about our past success here.

• Comprehensive Support: From valuation to due diligence preparation, we guide you every step of the way.

Conclusion

Finding the right M&A advisor is crucial for achieving a successful business sale that meets both your financial and personal goals. The ideal advisor will have deep industry expertise, a track record of proven results, strong professional networks, and clear communication—all working together to maximize your company's value during this important transition.

Ready to start your journey? Join one of our upcoming seller education livestreams (anonymous) or schedule a confidential call with us here.

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