Why Use an M&A Advisor?

Why should you hire an advisor when exploring the sale of your agency?  The following articulates AMGO Capital’s approach to the M&A process and how it adds value to agency/broker owners going through the sale process.

Preparing for a Sale
Committing towards a sale of your firm is an endeavor not to be taken lightly.  Financial, book of business, and employee information will need to be gathered in order to answer commonly asked questions by acquirers.  Just as one wouldn’t attempt to sell a house without first cleaning things up and making sure major issues that would turn away a buyer are addressed, AMGO Capital will provide a third party perspective on potential stumbling blocks for a deal.  It is easier to fix or address any potential issues before starting the sale process than when one is in the heat of negotiations with a buyer.

Screening of Acquirers
An experienced advisor will have an extensive Rolodex of contacts who are serious and knowledgeable buyers.  The advisor can screen out firms that don’t have the financial resources to do a deal or are just looking to gather competitive intelligence.  It can be frustrating to dedicate a lot of time and resources in negotiating with a buyer only to find out they cannot do a deal when some screening beforehand could have identified their inability to close.  AMGO Capital will place you in front of firms most likely to acquire your agency and minimize the time spent on long shot buyers.

Preserving Confidentiality
A professional M&A advisor will always keep confidentiality as a priority due to potential disruptions from word leaking out of a sale.  Key employees and clients may start to look elsewhere if they find out there may be a change in ownership.  Adversarial competitors may use this information to try to gain an advantage in the marketplace.  AMGO Capital will not only have confidentiality agreements executed by potential acquirers but also avoid contacting firms that owners are not comfortable dealing with.

Advising on Deal Terms
AMGO Capital can provide a second set of eyes to look over the deal terms and transaction structure of an offer and advise on where improvements can be made.  There are various components to an offer including purchase price, length and value of earn-out, balance sheet issues, employment contracts, potential tax liabilities, and other items that can have a significant effect on the overall attractiveness of an offer.  AMGO Capital can advise on common elements seen in these transactions and act as a guide in order to meet owners’ objectives in a sale.

Looking Out for Your Best Interests
Just as insurance brokers look out for their clients’ best interests and make sure they are adequately covered from a risk management perspective, AMGO Capital will evaluate and negotiate offers on behalf of your best interests and goals.  AMGO Capital will act as your agent during negotiations and provide a buffer between you and your future partner so that answers to difficult or touchy questions can be obtained.  Having a trusted advisor who will raise concerns on your behalf is immensely useful when you are heading to the altar with a buyer.

Minimizing Distractions
As mentioned previously, working towards the sale of an agency requires a lot of time and effort to make it happen.  AMGO Capital acts as your outsourced M&A professional handling all the administrative aspects of working on a transaction so that you can focus on running and growing your business.  AMGO Capital proactively manages the process in order to minimize disruptions and hurdles common during the M&A process.  Utilize AMGO Capital’s knowledge and experience to facilitate a deal that you are satisfied with.