M&A Advisors for Charlotte Companies
Get a free, private valuation and an advisor who sells lower middle market companies, with a process built for buyers who negotiate for a living.
Charlotte Business Brokers HQ introduces owners of larger companies around Charlotte to an experienced partner who handles deals at this size.
- No cost to you, ever
- Your name stays private
- Built for companies doing $1M+
Or call (704) 555-0187 and ask for a valuation.
What could your business sell for?
Three quick parts. A broker reviews it and calls you, free.
Once a company is likely to sell for around $5 million or more, the sale starts to look different. The buyers change, the paperwork grows and small terms can move millions of dollars.
Bigger Deals Call for a Different Kind of Advisor
A Main Street business broker usually sells owner run companies priced up to about $2 million. Those deals are priced on seller’s discretionary earnings, and the buyer is often one person.
An M&A advisor works in the lower middle market. The role is the same, standing between you and the buyer, but the toolkit is built for companies priced on EBITDA with management teams in place.
At this size, the buyer across the table is often a private equity fund, a family office or a larger company that has closed many deals. You want someone on your side with that same experience.
Stock Sale or Asset Sale Shapes Your Tax Bill
Smaller deals are mostly asset sales. The buyer picks the equipment, customer lists and goodwill it wants and leaves the corporate shell with you.
Larger companies more often sell as stock sales, where the buyer takes ownership of the whole entity. That is common when there are several shareholders or contracts that are hard to reassign.
The two can leave you with very different amounts after taxes. Buyers often prefer assets and sellers often prefer stock, so the choice becomes a point of negotiation. Bring your CPA in before any offer arrives.
A Structured Auction Draws Better Offers
Rather than talking to one interested party at a time, an advisor runs a controlled process designed to get several buyers to make offers in the same window.
- Prepare a confidential information memorandum and a detailed financial model
- Contact a targeted list of strategic and financial buyers under NDA
- Collect early indications of interest by a set date
- Invite the strongest buyers to meet management and dig deeper
- Ask for final letters of intent, then pick one buyer for exclusivity
Deadlines create tension, and tension improves offers. A buyer who knows others are bidding sharpens its pencil. Our page on selling to private equity covers one of the buyer groups you will see.
Read the Terms, Not Only the Price
Two offers with the same headline number can put very different amounts in your pocket. These are the terms an advisor watches most closely.
Earnouts
Part of the price is paid later only if the company hits set targets. They can bridge a gap in value, but they shift risk back to you, and targets you no longer control are hard to hit.
Escrow and Holdbacks
A slice of the price sits aside for a period to cover breaches of the promises you make in the purchase agreement. The size, length and claim rules are all negotiable.
The Working Capital Peg
The buyer expects a normal level of receivables, inventory and payables at closing. If you deliver less, the price drops. Setting the peg is technical, and it is where many sellers quietly lose money.
Buyers Travel for Companies This Size
IBBA and M&A Source research has found that smaller businesses often sell to a buyer within about 20 miles. Larger companies draw buyers from much farther away.
That matters in Charlotte. A strong company here can draw interest from funds and strategic buyers across the country, drawn by the airport, the finance community and a growing region.
A local only search leaves those buyers out. A national reach, with tight confidentiality, puts them in the room.
Diligence Gets Deeper and Fees Change Shape
Expect a quality of earnings report, legal review of contracts and close questions on taxes, payroll and customers. Clean, recast numbers save time and protect the price.
Our guide on SDE vs EBITDA explains the measure buyers will use.
Fees at this level often run on a sliding scale, with the percentage dropping as the price rises. Ask how any retainer works and whether it counts against the final fee.
Not sure which side of the line your company falls on? Start with a free valuation.
Fill out the valuation form or call (704) 555-0187 to talk privately about your options.