Business brokers generally work with companies that have annual owner discretionary income of less than $250,000. Business brokers tend to present those clients to local buyers. Smaller transactions such as these are usually not of interest to sophisticated buyers.
Investment Bankers are able to present client companies to sophisticated buyers. Many of these buyers are usually located in a different state than the seller. Some may even be located in a different country. Many will be large companies that look at hundreds of potential acquisitions each year. To attract their attention, a company must me marketed in a professional and thorough manner by experienced transaction professionals who understand how to get deals closed. They also know how to help buyers and sellers through the tangle of documentation, due diligence and negotiations that are part of the purchase or sale of a multi-million dollar business.
If you are interested in buying or selling a mid-sized business, give us a call. We promise it will be a rewarding, pleasant, and informative experience with no cost or obligation on your part.
We are often asked, "What’s the difference between an Investment Banker and a business broker?" The answer is competence. It lies in the education, training, and experience of the individuals and the organizations involved.
Investment Bankers and business brokers serve two very different markets. Business owners thinking about selling a business should first consider the size and complexity of the transaction and who is best suited to handle that type of transaction.
Secondly, the sophistication of potential buyers and with whom buyers feel comfortable working with.
Investment Bankers concentrate on assisting clients with the acquisition or sale of mid-sized or middle market companies. Companies that generally meet at least one of the following characteristics:
Annual gross revenues of $5 million or more. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $500,000 or more.