Networking and deep industry-specific knowledge and experience are key to finding a buyer for your business.
Michigan-based Exitwise doesn’t refer to itself as an investment bank. It says it is more like a network of investment banking and M&A (merger and acquisition) experts that exists to help business owners navigate possible exits.
Exitwise’s M&A experts have worked for some of the biggest names in investment banking, including Goldman Sachs Group Inc. GS and JPMorgan Chase & Co. JPM.
By building a network of specialists, Exitwise looks to tap into ever-increasing numbers of contacts. The company doesn’t directly target business owners since their inbound deal flow is already substantial and growing; instead, it targets M&A experts with direct knowledge of industry sectors who know the operators within them.
“We are a network of the best investment bankers who are very niche,” Exitwise CEO Todd Sullivan told Benzinga. “Our experts are only working in a single industry, and they know the buyers intimately.”
Sullivan should know. He’s founded and sold a number of companies, some with a software focus.
Sometimes he hired outside help to help sell the businesses, but it wasn’t until he was asked to sell another company as an M&A specialist that he knew he was out of his depth. That company was outside his area of expertise, and he wasn’t the right fit to sell the business.
Hence the idea of building Exitwise and its network of highly specific M&A experts. For example, Sullivan recruits M&A experts into the Exitwise network who aren’t just specialists in heating, ventilation and air conditioning (HVAC), they are experts in HVAC distribution.
All About The Owners?
But while specialist knowledge is key, it is the relationships between the M&A experts and business buyers that are perhaps the most important, according to Exitwise.
Close relationships with buyers built over periods of time can help ensure top dollar for the business owners as they seek to exit their well-run operations.
While some in the Exitwise network have specialist sector knowledge in terms of being investment bankers, and therefore well-established relationships with the buyers in that industry, many of them have also run their own businesses and appreciate the challenges involved in doing so.
“It is a true honor to be part of any entrepreneur’s journey,” Sullivan said. “We have been through that battle and know all the challenges so that we can relate as founder to founder.”
Exitwise operates mainly in the United States but also has M&A experts in Toronto and London. The company generally works with businesses with annual earnings before interest, taxes, depreciation and amortization (EBITDA) of $2 million to $25 million.
Picture credit: Cytonn Photography on Unsplash
This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.