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Transaction Advisory Services Catered to You

As the owner of a business with revenue between $1 – 20 million, you’re probably too big for business brokers, but too small for most Mergers and Acquisitions (M&A) firms. Your business is in a category referred to as lower middle market. That’s where we come in.

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Business Brokers VS Mergers & Acquisition Firms

Business brokers typically focus on “Main Street” businesses—smaller retail and service businesses generally providing products and services to consumers, with revenues under $1 million. The knowledge, sophistication, and selling process for these types of businesses is far different than that required for lower middle-market businesses.

Because of their structure and overhead, most M&A firms prefer to work with larger businesses, although some lower middle-market businesses can fall into this category. Lower middle-market businesses are often more problematic because they haven’t implemented the systems and strategies of larger companies.

The following table outlines some of the major characteristics of business brokers, M&A firms, and the Alberta Business Exchange.

Business BrokersAlberta Business ExchangeM&A Firms
Business TypeLocal; business to consumerLocal or regional; business to businessLocal, regional, national or international; business to business
Owner InvolvementCompletely dependent on single owner/managerMinor dependence on ownerNo dependence on owner
ManagementLittle to noneManagement in place or there is a near-term view to implementing a management team.Strong management team
Information provided to buyersBrief overview of businessComprehensive Confidential Information MemorandumComprehensive Confidential Information Memorandum
Number of engagements5-202-42-4
BuyersLocal; new owner/managerIndividuals, larger companies, or private equity firmsLarger companies or private equity firms
MarketingPrimarily online ads and company websiteComprehensive, strategic buyer research and online adsComprehensive, strategic buyer research
RepresentationCan work for both seller and buyerWork exclusively with sellerWork exclusively with seller
Level of confidentialityLow to moderateHighHigh
Deal complexityEasyModerate; Some involvement by accountants & lawyers, but no more than necessaryHigh; Strong involvement by accountant & lawyers
Fees100% commissionModest retainer; Success fee, less retainerSignificant retainer and/or work fees; Success fee
Timeline to sellA few weeks to a few months4-6 months9-12 months
Success rate20-50%Over 90%Over 90%

Our Services

We offer the same level of professionalism and sophistication as larger Mergers and Acquisitions firms, but focus on eliminating unnecessary complexities from the process. Over the years, we have found that many parts of the process can be streamlined without affecting the quality of the transaction.

We do more than just sell your business. Because we’re not a large firm, we are able to establish a strong relationship with you and become your trusted partner every step of the way.

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