What You Should Look for in a Staffing M&A Advisor

As a staffing firm owner looking to exit, it might be tempting to sell your business on your own, especially if you are knowledgeable about the M&A process. However, selling a company takes a large amount of time and effort that could be placed into running the business at its optimal state, which could ultimately lead to a higher valuation. Having an M&A advisor as a partner in the sale of your staffing firm is a way to go to market without hampering current business operations. You want an advisor that can do the following:

Source a larger pool of interested buyers. While you may already have a list of potential acquirers, you can expect an M&A advisor to have a much larger network of buyers. An M&A advisor can point you in the direction of buyers that may provide you with a much more lucrative deal than what you could have gotten with the list you started with. In addition to a large pool of acquirers that they are certain are looking to make a purchase, advisors are industry experts. They are aware of any parameters that might be set in place that will give you an advantage over another firm. Matchmakers in business, your advisor already knows how to match your ideal deal structure and synergies to a buyer looking for the exact opportunity. An M&A advisor’s network includes strategic and financial buyers, local and international firms, as well as private equity groups in various industries.

Protect your interests. It is important to keep the sale process of your staffing firm confidential because it could potentially lead to losing employees, candidates and important clients should news get out that your company is looking to be acquired. Promoting the sale of your company yourself can likely pose a challenge and compromise the sale’s confidentiality. An M&A advisor stands as a middle man between your company and all potential acquirers, ensuring the discretion of the deal by providing non-disclosure agreements before revealing your company’s identity.

Negotiate to maximizing the deals for you. M&A Advisors help create a competitive bidding environment for you and your staffing company and negotiate favorable deals on your behalf. The financing of deals is usually broken down into parts, and it’s an advisor’s job to negotiate for the most beneficial deal structure for both buyer and seller. When planning a deal structure that works best for you and your acquirer, advisors take into consideration your incoming contracts that will increase revenue within the next couple of years. An M&A advisors’ top priority will be securing a deal that will maximize value beyond the purchase price and create a synergistic deal environment from start to finish.

PREMIUM CONTENT: Staffing company planning package

Provide valuable resources. When selling your staffing company, it is important that your potential buyers know the full value of your firm. An M&A advisor can walk you through the marketing process and package your business for sale by creating decks and presentations that highlight your company’s background and achievements. When you work with an M&A advisor, you ensure that your company is being presented to sellers in the best light. Having a competent M&A advisor mediating between you and your buyers also gives credence to your firm’s credibility.

Choosing an Advisor with Expertise in Staffing & Recruiting

Many M&A advisors facilitate deals in a variety of industries, but it would be an added advantage to work with an advisor with a specialty in Staffing & Recruiting. A niche-focused M&A advisor has targeted industry knowledge, a vast connection of industry-specific contacts, and a better understanding of M&A deal flow in the Staffing & Recruiting industry. With this expertise, your chance at a lucrative deal is significantly heightened.

By working with an M&A advisor, you can worry less about generating buyer leads, marketing your business for sale and maintaining confidentiality during the sale process. Your advisor’s top priority is making sure that your business is sold for the highest valuation and best deal possible while giving you the time to continue working on the success of your staffing firm.

MORE: Conduct a pre-sale legal audit to set up a successful sale

Eric Allison

Eric Allison
Eric Allison is managing partner of Golden One Ventures, a boutique M&A firm catering to the middle market for the staffing and recruiting industry. He can be reached at eric (at) goldenoneventures (dot) com.

Eric Allison

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