04 Aug How Do You Know When You Need an M&A Advisor to Sell?
In IT services M&A, attempting to sell your firm alone is a high-stakes gamble that often leads to a failed transaction and zero enterprise value. This episode breaks down the statistical reality of “for sale by owner” deals, why founders often have inflated valuation expectations, and how an expert advisor can increase your final sale price by an average of 20%.
Selling a business is both an art and a science, yet many founders believe they can navigate the complexities of M&A while still running their daily operations. In this episode of Shoot the Moon, Mike Harvath, Ryan Barnett, and Matt Lockhart explore the critical role of the M&A advisor: why specialized industry knowledge beats generalist brokers, how to handle the “emotional scars” of negotiation, and why the current “silver tsunami” of boomer exits makes professional representation more important than ever.
Chapters
- 0:00 Cold open and introduction
- 1:30 The “For Sale by Owner” trap: Why most DIY deals never close
- 5:30 The 20% Premium: How advisors move the needle on valuation and terms
- 10:00 Art vs. Science: Why vertical specialization matters in IT services
- 15:00 Taking your eye off the ball: The hidden cost of DIY M&A
- 20:00 Pre-market prep: Finding and fixing “chinks in the armor”
- 25:30 Creating competitive tension and the power of choice
- 30:00 The “Silver Tsunami”: 10 trillion in assets coming to market
- 34:30 Reducing emotionality and avoiding “battle scars”
- 37:00 Starting a conversation, not a commitment
In this episode
- Statistics don’t lie: While general close rates for listed businesses are only 20–30%, specialized advisors often achieve close rates between 80% and 95%.
- The DIY discount: Firms represented by an advisor typically sell for 6% to 25% higher than those that go it alone.
- Focus on execution: A founder’s number one job during a sale is to continue driving results; taking your eye off the ball to manage a deal is a “recipe for disaster”.
- Specialization is key: Generalist attorneys or accountants are often like “a dentist doing knee surgery”; you need a specialist with access to private transaction data (comps).
- The Trifecta of fit: A professional process ensures you have choices across strategic, cultural, and financial fitrather than being leveraged by a single buyer.
Links
- Read more on our blog: https://www.revenuerocket.com/blog/
- What’s your firm worth? Valuation calculator: https://www.revenuerocket.com/valuation-calculator/
- Schedule a confidential conversation: https://www.revenuerocket.com/contact-us/
- Listen to Shoot the Moon on your favorite platform: https://www.revenuerocket.com/podcast/
- More from Revenue Rocket: https://www.revenuerocket.com/
About Revenue Rocket
Revenue Rocket is a sell-side and buy-side M&A advisory firm focused exclusively on IT services companies, including MSPs, cybersecurity, cloud, custom application development, and VARs. For 25+ years we have helped founders grow, position, and sell their firms.
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Thinking about your next move? Schedule a confidential conversation: https://www.revenuerocket.com/contact-us/