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We were just concluding our first information gathering meeting with a new client who had engaged us to sell her business when she handed us a letter. That letter was from another Merger and Acquisition Advisory or Business Broker firm.
The letter began: Our buyer group has requested that our firm assist them in locating a company within your industry that would be willing to sell their business. The limited information we have regarding your firm indicates that your business may meet the buyer's requirements. We would like to speak with you further about the opportunity to sell your business.
Our new client asked us what we thought about this letter given that her company was very unique and she did not believe that this company really understood what her business did. As I read the letter, my suspicions were confirmed. This unfortunate practice of soliciting business owners through mass mailing representing supposed buyers gives our profession a real black eye. I don't know where this practice started, but many in the business broker profession have unfortunately been taught that this is a valid way to prospect for sell side engagements.
Here is how it works:
Dave Kauppi is a Merger and Acquisition Advisor with MidMarket Capital Advisors, LLC. MMCA is a private investment banking and business broker firm specializing in providing corporate finance and business intermediary services to entrepreneurs and middle market corporate clients in a variety of industries. The firm counsels clients in the areas of M&A and divestiture, family business succession planning, valuations, minority interest shareholder sales, business sales and business acquisition. Dave is a Certified Business Intermediary (CBI), a licensed business broker, and a member of IBBA (International Business Brokers Association) and the MBBI ( Midwest Business Brokers and Intermediaries). Contact Dave Kauppi at (630) 325-0123, email davekauppi@midmarkcap.com or visit our Web page www.midmarkcap.com.
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