Timing is critical for mergers and acquisitions (M&A), and knowing when to bring in an M&A advisor shapes the process and the result. Still, many business owners wait until a deal is on the table. By then, much of the leverage has already shifted. 

An experienced advisor can help assess your position, prepare your business, and guide the transaction. The earlier the relationship begins, the more time to prepare, helping you strengthen your market position and make better decisions. So, when should you start talking to an M&A advisor?   

Before You Receive an Offer

The best time to engage with an M&A advisor is before a buyer contacts you. Waiting until an offer lands on your desk forces you to react instead of lead. 

An advisor will help you understand what your business is worth in the current market and why. They'll assess financials, growth potential, and operational strengths, uncovering hidden value. This process shapes your exit strategy and helps maximize your business's value. In fact, M&A advisors can increase deal success rates by up to 3.7%. 

Getting a head start also gives you time to address weaknesses that will lower your valuation. Making these adjustments before talks begin is much easier than when under pressure. Talking to an advisor early helps you go into negotiations with confidence and the best information. You'll walk in knowing what matters to buyers and where you stand. 

During Periods of Strong Performance

When your business shows steady growth, clean books, and solid margins, it becomes more attractive to serious buyers. An M&A advisor helps you take advantage of this window. They know how to capitalize on your momentum, drawing in the right buyers before market conditions shift. Waiting too long can turn an ideal opportunity into a tougher sell. 

Selling from a position of strength shifts the balance in your favor. Buyers compete harder, and you have room to push for better deal structures. Strong performance gives you leverage, and advisors help you use it wisely. 

When Facing Operational or Industry Challenges

It's difficult to understand the next step when your company is under pressure. An experienced M&A advisor can help you evaluate your options and find ways forward that may not be immediately visible from inside the business. They can help you sort through the noise and focus on solutions that preserve value. 

M&A advisors also bring an informed outside voice to high-stakes negotiations. They know how to manage conversations with buyers, creditors, and stakeholders when timing, positions, and presentation matter most. Their involvement helps prevent avoidable losses and keeps deals from stalling out. 

Before Raising Capital or Restructuring Debt

It's worth considering the broader strategic picture before raising capital or restructuring debt. An M&A advisor can help identify whether alternative options like a recapitalization, partial sale, or merger might better align with your company's long-term goals. 

Advisors also open doors to potential equity partners or acquirers that might not be on your radar. More importantly, their guidance can help avoid short-term decisions that can create problems in the future. 

Before a Generational or Ownership Transition 

Timing a preparation matter before a generational handoff or ownership change. M&A advisors help structure what might become an emotional and disorganized process. They allow you to map a clear path to success, aligning goals between family members, partners, and other key players. 

You can avoid rushed exits or internal disputes by involving an advisor early. The process becomes less reactive and more forward-looking. You can also get peace of mind knowing your legacy and the business are set up for future success. 

Engaging early with an M&A advisor ensures you're ready long before a deal is on the table. Their involvement gives you a clearer view of your options and more control over the outcome. The best deals are rarely rushed. They're built on preparation and timing. Talking to an M&A advisor early lets you shape the strategy on your terms before others start setting the pace.

Looking for seasoned M&A advisors?  With innovative strategies, personalized solutions, and unwavering dedication, SHG's advisors provide razor-sharp insight, innovative ideas, and a wealth of network connections that only seasoned business experts can provide. Contact us today to learn more.