What Is The Difference Between A Business Broker And An M&A Advisor

What Is The Difference Between A Business Broker And An M&A Advisor -

It is important to know the clear distinction between a business broker and an M&A advisor.  Based on your company’s size and industry you will be able to choose the right professional. Especially when it comes to you exiting and selling your business. 

So when we talk about size of your company, what do we mean? Business brokers work with entities that are usually main street businesses, generating $5MM in revenue or lower. M&A Advisor works with entities that are generating $5MM to $50MM or even higher in revenue. 

Another clear distinction is that the business brokers are well versed in their niche. They have the resources and knowledge to bring a deal to completion based on their skill set in the main street businesses sphere.  

On the other side M&A advisors are accustomed to a lot of complexities that comes with the higher end entities.  They also have relationships with strategic buyers, private equity firms, family offices, and holding companies.  

Business broker will look for cash flow of the business or SDE, which stands for Seller’s Discretionary Earnings. M&A advisors will work with EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation and Amortization.  

Hiring the right team is extremely important in order to spend less time in the marketplace and get the maximum value for your business.  

To learn more on the differences head on over to where we have written an extensive article on other key differences


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