By Kyler Gilbert, Associate Consultant, Business Consulting Resources
Business Consulting Resources is excited to share with our community and clients that we have a new collaborative relationship with Tabori Gilbert. As specialists in mergers and acquisitions and business brokerage, Tabori Gilbert offers our clients expertise in consolidating their company and business assets.Business Consulting Resources has a new collaborative relationship with Tabori Gilbert. As specialists in mergers and acquisitions and business brokerage, they offer our clients expertise in consolidating their company and business… Click To Tweet
This three-part Q&A blog series offers insight from Dan Tabori, managing partner at Tabori Gilbert (TG) into what they do for business owners and advice for those exploring the process of selling their business or buying a business.
Dan Tabori Interview
BCR: Dan first off, thanks for taking the time to chat with us and share some of your knowledge. To start off, can you tell us what the difference is between M&A and business brokerage?
Tabori: I think doing M&A is more of an activity, you might be merging with another company or there might be an acquisition where you’re buying or selling. Business brokers are companies who represent buyers and sellers and are responsible for brokering the deal, as the term suggests.
M&A also represents an umbrella term that is used in both the private and public markets for transactions that involve working with buying and selling businesses. Business brokerage is a term you see more often when a company is representing a seller and helping them find a buyer for their business.
Ultimately, business brokers help sellers who want to sell their company find buyers. The outcome of this can be a merger or a full sale of the business. M&A advisors are advising on contemplated transactions or partnerships.
BCR: How can M&A affect one’s company?
Tabori: There is never going to be a case where it is black or white. You will have to talk with the owner and find out what their goals are. From the perspective of the seller whether you call it M&A or brokering your business, they are basically the same, but they just serve different segments of the market.
BCR: More broadly, how should a company take advantage of business brokerage, and what does it usually look like in practice?
Tabori: It all starts with succession planning where the owner(s) are trying to figure out the next chapter for their company. Sometimes the owners are retiring and sometimes they are looking for a liquidity event. As soon as they discuss succession and one of the options is selling (outright or partially), a business broker is someone they should engage sooner than later to help set the strategy and direction moving forward as they explore that option.
In order to maximize the value of a company, it helps to prepare for the ultimate sale rather than start the process late. A good business broker can help you market the business for sale and do things like preparing the financial record keeping and ensuring the company is financially positioned in the best way so you can attract the most buyers at the highest valuation. This includes a relationship with an M&A advisor too. Often, sellers wait too long to engage in the succession planning of their business.
From the buyer’s perspective, this is most likely seen in the M&A advisory side. TG works with buyers looking to do strategic acquisitions, where growing organically is not going to happen as quickly as they are looking for. We assess what the buyers are looking for and incorporate the traits of businesses they are looking to buy and then go into the market to find potential buying opportunities.
Think of it like selling your house. If you’re thinking about selling, you wouldn’t go out tomorrow and try to sell your house. You’ll look at the market, hire a real estate broker, get the house in good working order, and enter the market at the right time to get the best value out of your home.In order to maximize the value of a company, it helps to prepare for the ultimate sale rather than start the process late. Often, sellers wait too long to engage in the succession planning of their business assets. Dan Tabori, Tabori… Click To Tweet