With an M&A Advisor, You Go Further

The M&A landscape is constantly evolving. Today, we see a clear professionalisation of the corporate finance sector, a growing number of private equity funds, and a noticeable shift where even younger business owners are opting to (partially) sell their companies. As a result, the importance of expert M&A advisory has never been greater.

That’s the message from Dirk Marckx, Managing Partner at M&A specialist Merodis.

A new generation of sellers

“Whereas the typical seller used to be a business owner without a family successor after 30 or 40 years of hard work, today we’re seeing more and more relatively young entrepreneurs entering the market,” says Marckx.

Many of these owners started their entrepreneurial journey early and, after just 10 or 15 years, are already choosing to sell to a strategic buyer—or to enter into a partial sale with a private equity fund.

“This allows them to realise part of their company’s value while bringing a sparring partner on board to write the next chapter of their business and entrepreneurial story.”

A rise in private equity

In parallel with this trend, Merodis notes a significant increase in the number of professional private equity funds—a positive development in their view.

“We’re seeing many more experienced investment funds in the market today compared to five or ten years ago,” adds Arnaud Goossens, Partner and co-owner at Merodis. “That’s a good thing, because these funds bring not only capital, but also valuable expertise, strategic insight and a broader professional network to the companies they invest in or acquire.”

Corporate finance continues to mature

These evolutions have also contributed to the growing number of independent M&A advisors. Both Merodis partners welcome this trend.

“All of this has led to a rise in highly specialised, professional M&A advisors—which in turn raises the bar across the industry,” says Goossens. “And ultimately, that’s a win for the many hard-working, driven entrepreneurs who will one day sell their business.”

You get further when you go together

Now more than ever, entrepreneurs should surround themselves with specialised advisors when considering a company sale, says Marckx. The risks in an M&A process are many.

“In most sale processes where the seller hasn’t worked with an advisor, we see lower valuations and unfavourable contract terms,” he explains. “The risk of the deal falling through is also much higher. That’s why we strongly advise against going through this complex and strategic process alone.”

At Merodis, the team leverages years of experience to engage a broad set of potential buyers or investors. “This increases deal success rates, boosts the sale price, and improves the deal structure,” Marckx continues. “We also always encourage clients to appoint a specialised M&A law firm. Throughout the entire process, we bring both expertise and a human touch to the negotiating table, ensuring the deal is carefully managed while daily business operations remain unaffected.”

Source: Sterck Magazine, 01/10/2023,This is an automatically generated translation of the original article, Link to original article.