An advisor who assists buyers and sellers of privately held small business throughout the business transfer transaction process. An agency relationship typically exists between the intermediary and either the buyer or seller. The intermediary offers transaction advisory services such as estimating the value of the business; advertising it for sale with or without disclosing its identity; managing the initial buyer/seller interviews, discussion and negotiations; facilitating the progress of the due diligence investigation and generally assisting with the business sale. Intermediaries require special skills – number crunching ability, excellent verbal and written communication skills and the capacity to work very long and grueling hours. For businesses selling below about $2 million, the intermediary is often referred to as a Business Broker. For businesses selling above $5 million, the intermediary is often referred to as a Merger and Acquisition (M&A) advisor or an investment banker.
- by Kim Mehring