Should my buy side advisor attend meetings with the sell-side team?

August 16, 2021

by a searcher in Illinois, USA

Curious if anyone has used buyer side ( not a broker) advisor's help to Program Manage the due diligence ?
Is it usual to have them attend meetings with seller/seller side broker ? The advisor has an hourly cost and insists on attending atleast one meeting to get the feel of sell side team.

What are some of the Dos and Donts ?

Thanks in advance.

0 Likes

18 Replies

159 Views

Replies

Reply by an intermediary
from Indiana University at Bloomington in Carmel, IN, USA

I am a full service buy side advisor. My claim to fame (my clients words) is on the front end of finding and bringing to the table business owners who are not listed by a broker or on the internet. I spend 50% of my time talking to and "controlling" sellers. I usually have a minimum of 2 conversations with the seller prior to my client. I am always involved with most and especially the first conversation. Our clients are the "A" list of business buyers, those who are qualified, realistic and determined to buy a business. Most have been involved in M&A deals in the past and understand the value we bring to the table, from finding and starting a conversation with the right buyer, negotiating the LOI, working with the banks (who will usually provide a discount to our clients as the chances of succeeding is greatly raised, so less work for them), helping with the DD, wearing the black hat if needed, controlling expectations, reducing legal fees, all of which reduces time frames, lowers costs and raises the chance of getting to the deal table. So to answer your initial question, using the right buy side advisor that will help throughout the process and who will attend meetings will benefit a buyer greatly.

Reply by an intermediary
from The University of Chicago in Chicago, IL, USA

As john Martinka said, buyer and seller must bond. That should take priority. There is nothing wrong with a buy-side advisor in meetings. I welcome if seller invites his advisors (attorney, CPA or someone else). The sooner the seller brings his/her advisors on the table, better it is for a buyer. A buyer-advisor should not dominate the conversation and should not insult the seller or his/her advisors. If anything, a buyer-advisor should hold back his/her expertise until the situation warrants. I tell my buyer-clients that in the meetings I'll often take seller-side positions. One of the keys in LMM M&A is to flush out seller objectives, level of seller-education and readiness as quickly as possible.

+16 more replies.

Join the discussion