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M&A Intermediary

Definition - What does M&A Intermediary mean?

An M&A intermediary provides a number of services related to middle market deal making such as acquisitions, divestitures and financings. In some instances, lawyers, CPAs and financial consultants can also act as an M&A intermediary.

An M&A intermediary refers primarily to practitioners that provide advice on transactions in the lower middle market between $5 million and $100 million. The ability to raise capital and deal complexity distinguishes an M&A intermediary from a private or public investment banker. An M&A intermediary is generally not active in raising equity or private placements and have less experience with more complex transactions such as MBOs, recapitalizations, reverse mergers, tender offers and IPOs.

Divestopedia explains M&A Intermediary

A business owner must assess the skills and experience of the professionals they are considering hiring when completing an M&A transaction. It is important to consider the following attributes:

  • Track record of success - What is their closing ratio?
  • Regional focus - Do they have the reach and network to find the best buyers?
  • Industry expertise - Do they understand the operations, trends and M&A environment of your industry?
  • Transaction size - Are they capable of handling your deal size?
  • Transaction type - Do they have the intricate knowledge of your deal complexities (i.e. MBO, reverse merger or IPO)?
Based on the above assessment, an owner may determine that a private or public investment banker is better equipped than an M&A intermediary to complete the deal.

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Resources

  • Equicapita: Equicapita
    Equicapita's model is to acquire established, private small and medium sized enterprises (“SMEs”) located primarily in Western Canada.
  • Evolution Capital: Evolution Capital
    Leaders in growing small business.