You’ve dedicated years to building your business, and now you’re considering what comes next. Choosing the right M&A advisory partner could be the most crucial decision you make in this process.

TL;DR: The right M&A advisor offers deal experience, industry knowledge, and transparency. Don’t just chase the lowest fee or the biggest name; find someone who will truly be there with you when challenges arise.

What Experience Should Your M&A Advisor Have?

You need someone who has successfully closed deals similar to yours. This includes size, complexity, and structure.

Ask how many transactions they’ve completed in the last three years. What sizes were they? How many fell through, and why? A good M&A advisory partner will be honest about their experiences, including any losses, and share what they learned from those situations.

Why Industry Knowledge Actually Matters

General deal experience is fine, but industry-specific experience is invaluable.

When your advisor knows your industry, they understand the buyers. They recognize market trends and deal structures that lead to success or problems later on. This knowledge is crucial when valuing your unique processes or client relationships.

Should You Work with a Large Firm or Boutique Advisor?

Large firms have resources, while boutique advisors maintain focus.

I’ve seen both types of firms succeed and fail. The key question isn’t the size of the firm; it’s whether you will work directly with a senior partner or get passed to a junior associate. Smaller firms often provide consistent attention from experienced individuals. Larger firms may offer a broader network, but you could miss out on a personal touch.

How Do Advisory Fees Work in M&A Deals?

Most M&A advisors operate on a retainer plus a success fee structure. Some may operate solely on success fees, which can be risky; misaligned incentives might lead to pursuing any deal instead of the right one.

The cheapest option is not always the best choice. If someone is charging significantly less than the average rate, consider why. Are they less experienced or willing to cut corners?

Clear fee structures are crucial. You should understand what you’re paying and when, avoiding surprises as you approach closing.

What Questions Should You Ask Before Hiring?

Start with these: Who will actually do the work? How many other deals are you working on now? What’s your process when a deal encounters issues?

Inquire about their network as well. A well-connected advisor can bring in qualified buyers, not just anyone who responds to a listing. They should know which private equity firms are looking in your area, which strategic buyers have the funds, and who is genuinely interested versus just exploring options.

And don’t hesitate to ask about deals that didn’t close. Their response will reveal a lot about their honesty and experience.

The Chemistry Factor

You’ll spend months working closely with this person. It could even extend over a year if you include planning for an exit strategy.

Do you trust them? Do they listen to you? When they deliver bad news (and they will), do they do so directly or soften the blow?

Chemistry matters. It’s practical. When negotiations become tense late at night just before closing, you want someone by your side whom you trust and can communicate with effectively.

Our Thoughts

Choosing an M&A advisory partner is a personal decision. At Surfside Capital Advisors, we have guided business owners through exits, mergers, and acquisitions in various industries and deal sizes. If you’re considering your next chapter, let’s have a conversation—no pressure, just an honest discussion about what makes sense for your situation. Reach out, and we’ll see if we’re the right fit to support you in this process.