Whether you’re buying or selling a business, there are a few players that are “must-haves” on your transaction team: personal lawyer, CPA/Tax professional, representative of your IBD/Custodian, personal stakeholders, and a non-advocate, industry-experienced mediator.
The role of each of these players is important to the overall success of your deal, however, the mediator can sometimes be overlooked–often to the disadvantage of your deal. So, why are they so important?
While some may view mediators as an added–and perhaps unnecessary–expense or even just another voice to muddy the conversation, more often than not this seat at your table will end up saving you time, money, and headaches. An intermediary who has industry-specific M&A experience can:
- Guide both parties through comprehensive due diligence to avoid any late-in-the-game surprises that could derail the deal.
- Help both parties understand fair and reasonable deal terms as well as business value that considers the relationship-based nature of the financial services industry.
- Ensure you have complete documentation in place for the transaction, including everything you’ll need to transfer clients and staff as well as remain compliant with any federal, state, and organizational regulations.
- Identify potential roadblocks before they arrive by anticipating red flags and keeping an eye out for common miscommunications between parties.
- Streamline negotiations and get the deal closed on a shorter timeline by leveraging their expertise to keep things on track and make sure all the boxes are checked throughout the process.
- Improve post-closing client retention rates by establishing expectations for transitional involvement and facilitating a collegial working relationship between buyer/seller.