Selling or buying a business is one of the most significant financial decisions an owner will make. Whether you're looking to exit, expand, or invest, the M&A process is too complex to navigate alone. Having the right M&A team in place can help you avoid costly mistakes, stay focused on your goals, and walk away with the outcome you want.

What Makes a Strong M&A Team?

A strong M&A team brings together professionals with complementary expertise. Each member plays a specific role in helping you navigate the process and avoid costly mistakes. These roles work together to create alignment across all areas of the transaction:

• M&A Advisors – Oversees the deal process, identifies potential buyers or sellers, and drives negotiation strategy.
• Attorney – Ensures legal protections are in place and that the deal structure aligns with your long-term goals.
• CPA or Tax Advisor – Focuses on financial reporting, tax implications, and deal structuring to help you keep more of the sale proceeds.
• Wealth or Financial Advisor – Helps you understand the personal impact of the transaction and plan for life after the deal.

What to Consider When Choosing Your Team

Choosing the right M&A team means looking beyond basic credentials. You should always consider:

• Track record – Do they have a history of closing successful transactions?
• Fee structure – Is the pricing transparent and aligned with your goals?
• Rapport – Do they listen and communicate clearly?

Risks of Going It Alone (or Hiring the Wrong Team)

Managing a transaction without specialized support or relying on general advisors who lack M&A experience can introduce risks that impact both the deal and its long-term value. Some of the most common complications include:

• Missed Opportunities in Negotiation – Without strategic guidance, sellers may undervalue their business, overlook favorable terms, or concede ground that limits future flexibility.
• Unanticipated Tax Consequences – Inefficient structuring can trigger unnecessary tax liabilities, sometimes surfacing well after the deal is done.
• Outclassed Attorney – Attorneys lacking experience in M&A transactions may miss issues and not know how to negotiate legal terms when dealing with a highly experienced M&A attorney.
• Poor Buyer or Seller Fit – A mismatch in goals, culture, or operating styles can lead to challenges, integration issues, or even a failed transaction.
• Overlooked Regulatory or Compliance Issues – Missing key industry-specific rules or legal requirements can delay closing or create future liabilities.
• Inaccurate or Inflated Valuations – Misjudging value can stall negotiations, damage trust, or lead to a deal that simply doesn’t hold up under inspection.

Sometimes, a business owner tries to negotiate and handle a sale transaction without an M&A Advisor. More often than not, the transaction does not close. If it does, the deal terms are not optimal for the seller.

Additionally, there are times when a business owner, against advice, uses their regular business attorney (who has limited or no M&A experience). These types of deals take much longer than a typical transaction and could likely have secured better legal terms during the purchase agreement phase.

How the Right Team Drives Value

The right advisors bring structure, strategy, and foresight that can significantly enhance your outcome at every stage of the transaction.

Strategic Deal Structuring

The way a deal is structured can impact your tax liability, cash flow, and even earnout potential. For example, converting a portion of the sale price into an installment or equity-based structure may defer taxes and provide future upside if it aligns with your goals.

Thorough Due Diligence

A seasoned team will dig into the financials, operations, and legal considerations to uncover hidden risks. This might include identifying an overreliance on a single customer, lapses in compliance, or outdated vendor contracts that could affect post-sale value or buyer confidence.

Accurate Valuation

M&A advisors understand how to position your company based on industry trends, performance metrics, and comparable transactions. Rather than relying solely on multiples, they can highlight value drivers (like proprietary tech, recurring revenue, or a strong leadership team) to support a higher valuation.

Negotiation Support

Your team helps you craft a strategy based on market data and deal dynamics. For instance, they might push for a working capital peg to protect your interests during closing adjustments or advise on non-financial terms like transition roles or non-compete clauses.

Post-Transaction Planning

Closing the deal is only part of the journey. An experienced team can help you roll proceeds into a tax-efficient investment plan, transition key employees, or integrate newly acquired operations smoothly. For a list of post-acquisition items that should be considered, see our Checklist for a Seamless Business Transition.

What Does Success Look Like?

We have had two recent successful transaction closings where the business owners had previously tried to sell without a full M&A process.

In both instances:

• The owners were contacted by an interested party and started negotiations on their own.
• Each deal eventually fell apart after signing a Letter of Intent (LOI) and spending a significant amount of time and money on legal fees.
• Subsequently, Lutz M&A was hired to run a full sell-side M&A process.
• Both businesses ultimately sold for over 20% more than the failed transaction attempts.

The Importance of Quality and Accuracy during the Sale Process

One of the primary concerns of a business owner in the sale process is making sure the buyer doesn’t try to renegotiate the sale price after the LOI is signed. To eliminate this problem, the business owner must provide the buyer with quality numbers when coming up with their offer.

Be sure to consider:

• Most businesses have ‘add-backs’ to their normal year-end financials to present the true earnings the buyer can expect.
• Many selling businesses do not have audited financial statements.
• Some may not be properly recording their revenue or expenses in accordance with generally accepted accounting principles (GAAP).

These issues, specifically overstated add-backs and GAAP discrepancies, often lead to sale price adjustments.

When Should You Engage an M&A Team?

The earlier, the better. Engaging an M&A team well before you’re ready to transact gives you the time and perspective needed to position your business for the best possible outcome. Whether you're considering a sale, acquisition, or merger, a seasoned team can assess your readiness and identify red flags that could impact value down the road. Early engagement puts you in control and allows for more thoughtful, strategic planning.

The Right Team Makes All the Difference

The right team presents clarity, structure, and value to every phase of a deal. At Lutz M&A, we have CPAs who thoroughly analyze and review the numbers to ensure they are reasonable and accurate. Our team also works on the buy-side of M&A, reviewing financials for buyers during due diligence. These combined capabilities are two key ways that Lutz M&A provides a comprehensive and reliable approach.

If you’re considering a transaction or simply want to understand your options, our team is here to help with expert M&A solutions. Reach out to start the conversation.