Many people tend to confuse mergers and acquisitions advisors with regular business brokers. While both professions are somewhat similar, there are many important differences that we have to take note of, especially regarding a mergers and acquisitions advisor’s ability and tendency of handling larger and more diverse types of transactions.
In most cases, business brokers operate in a similar way to M&A advisors, but their scope is significantly more limited. While a business broker might be able to take care of straightforward business mergers, purchases and sales, such as that of an auto repair shop being purchased by a car repair expert fresh out of school, an M&A would be required if your aim is to invest in a business strategically or consider a large purchase of multiple businesses.
Complex business transactions, like real estate firms taking over a large block of shops and aiming to build additional stores on other purchased lots can be more difficult to handle for a regular business broker. In this case, hiring mergers and acquisitions advisory firms to provide you with helpful advice, support and services will not only ensure that your complex business transaction goes smoothly, but also assist you to find the means to finance your venture and disarm any potential disputes that could precede the purchase.