13 Mar The Value of an Tech-Enabled Industry Specific Advisor
Having an advisor with your industry’s experience is critical when picking a firm to help you through the murky waters of M&A. For tech-enabled firms, an advisor like Revenue Rocket which specializes in IT services and has been getting deals done for IT services for over 20 years, could be the right choice. An industry specific firm has deep knowledge and experience of that area while also bringing industry-specific relationships to the table. In our case, we are a tech-enabled industry advisor which means we specialize in firms like MSPs, Cybersecurity, Custom Application Developers, and App Implementors.
Here’s our top 6 reasons for choosing an industry-specific M&A advisor for your next deal:
- Industry Specific Knowledge
An industry specific M&A advisor will have a deep understanding of the trends, challenges, and opportunities that are unique to your industry. This knowledge can be invaluable in helping you to identify potential acquisition targets and negotiating the best possible deal. Your advisor will also be realistic and experienced when it comes to timelines and getting a deal done.
- Access to Key Players
An industry specific M&A advisor will also have a network of key contacts within your industry. This network can be extremely helpful in identifying potential acquisition targets and getting access to the information you need to make an informed decision.
- Deal Structure Expertise
An industry specific M&A advisor will also be an expert in different deal structures. This means that they will be able to advise you on the most tax-efficient way to structure your deal, which can save you a significant amount of money. Today’s deal structures are continuing to evolve in an effort to attract sellers and maximize valuations when justifying accretive business combinations. Your advisor will have experience in understanding these structures in that industry specific landscape.
- Negotiation Skills
An industry specific M&A advisor will also have a wealth of experience in negotiation. This experience can be invaluable in helping you to negotiate the best possible price for your acquisition target. We sometimes like to say we will be the “bad guy” and advocate for you during the hard parts so you don’t have to. You run your business, and we’ll handle the rest.
- Exit Strategy Planning
An industry specific M&A advisor will also be able to help you with exit strategy planning. This is important because it will ensure that you are able to maximize the value of your company when you eventually sell it.
- Post-Acquisition Integration
Finally, an industry specific M&A advisor will also be able to help you with post-acquisition integration. This is important because it will ensure that the acquisition is successfully integrated into your business and that all of the synergies are realized. Your advisor will also be critical during the “11th hour.” The 11th hour is a tough one for both sides and while we always work hard to circumvent any objections or emotions it is important to both the seller and buyer to remember why they started the process, signed the LOI and why the market will see value in what they are going to build together.
We launched a podcast episode on this topic! The Revenue Rocket teams talks about their first hand experience with being a tech-enabled advisor and why that gives them the expertise to get a deal done: https://www.revenuerocket.com/podcast/value-of-an-industry-specific-ma-advisor/