What are M&A advisors and how to work with the best one
Taylor Wallace
March 15, 2023 ⋅ 8 min read
This article was originally written in March 2023 and has since been updated with new discoveries and research in 2025.
Selling a business is a big milestone—and without the right support, it’s easy to get stuck.
We’ve seen it happen time and time again. Take Dan, the owner of a growing software company spent months trying to sell his business on his own. He’d built something valuable, but the process stalled without a clear plan. His marketing materials were patchy, prospective buyers didn’t take him seriously, and he fielded more lowball offers than real interest. With no clear buyer qualification process and no one to guide negotiations, the deal quietly fizzled.
It’s a story we hear often at Baton Market. And it’s exactly why understanding what an M&A advisor does—and choosing the right one—can mean the difference between an exhausting dead end and a successful sale.
If you’re a small business owner, especially one operating in the under-$10M range, navigating mergers and acquisitions (M&A) might feel like foreign territory. But selling your business shouldn’t be about guesswork. Partnering with the right advisor can maximize your business’s value, streamline the process, and help you avoid common pitfalls along the way.
Let’s break down what an M&A advisor actually does, where traditional approaches fall short, and how Baton Market is changing the game for small business sales.
What Is an M&A Advisor?
Think of an M&A advisor as your business’s advocate in the sale process—the person (or team) responsible for managing every transaction step, from pricing strategy to closing the deal. If a real estate agent helps you sell your house, an M&A advisor does the same for your business—but with a lot more moving parts.
At its core, an M&A advisor’s role includes:
Helping owners understand the true value of their business through accurate business valuations
Preparing professional marketing materials and investment memorandums
Running outreach to identify and vet prospective buyers
Leading negotiations and structuring the deal
Overseeing due diligence and helping both sides clear hurdles to closing
But here’s the catch: Not all advisors are created equal. Many focus exclusively on middle-market companies ($20M–$100M) and work with investment banks, private equity firms, or large corporations.
These traditional advisory services often come with high retainers, limited communication, and processes that aren’t built for the hands-on, often personal nature of small business sales.
The result? Owners of smaller businesses get deprioritized—or worse, sold short.
What Do M&A Advisors Typically Do in a Sale Process?
Understanding the advisor’s role across each sale stage helps clarify where they add real value—and where some traditional models leave gaps.
Business Valuation and Market Positioning
Accurate business valuations aren’t just about plugging numbers into a formula. Good advisors dig into industry research, comparable transactions, and your business’s unique strengths to tell the right story.
This includes positioning your business effectively for the right audience—whether an individual buyer using Small Business Administration (SBA) financing or a group looking for a strategic acquisition.
Preparing Financials and Materials
Buyers need to trust what they’re seeing. Advisors help package your financial statements, operational insights, and marketing materials into clear, credible investment memorandums that inspire confidence.
Finding and Vetting Buyers
A great advisor doesn’t just wait for buyers to come knocking—they proactively identify, screen, and engage qualified prospects. This means saving you from tire-kickers and focusing your time on serious buyers with real intent and capacity.
Negotiation Support and Deal Structuring
Closing a deal isn’t just about agreeing on price. It’s about structuring terms that work for both sides—whether that involves seller financing, earn-outs, or corporate restructuring considerations.
Advisors help you understand your options, avoid common missteps, and maintain momentum. If you're navigating this stage, it can be helpful to consider approaches beyond the usual checklist—our resource on negotiating your small business sale offers useful insights here.
Overseeing Due Diligence and Closing
Deals often fall apart during due diligence. Advisors guide you through this phase, helping address questions around operations, financials, and legal matters.
They also work closely with your financial advisors and law firms to keep the process on track. Their role is to anticipate and resolve issues before they derail your deal.
When Does it Make Sense to Hire an M&A Advisor?
Not every sale requires full-service advisory support—but many small business owners underestimate how complex selling can be.
If you’re considering a sale and any of the following resonate, an advisor could be your smartest next move:
You’re selling for the first time and are unfamiliar with the process.
You aren’t sure how much your business is really worth.
You want to attract serious, qualified buyers—not just "interest."
You hope to avoid wasted time, slow timelines, or lowball offers.
It’s also important to know the difference between the types of professionals who might help—a topic we explore further in our guide on M&A brokers vs. advisors:
Brokers: Typically list businesses for sale and wait for inquiries; often operate more like salespeople than strategic partners.
Accountants and lawyers: Essential for tax and legal details but generally not involved in marketing, buyer outreach, or deal management.
True M&A advisors: Offer end-to-end support with pricing, outreach, negotiations, and closing.
Choosing the right advisor means finding someone who understands not just the deal—but also your goals and the unique dynamics of small business transactions.
Understanding the Problem With Traditional M&A Advisors
The reality is, most traditional M&A advisors aren’t built to serve businesses under $10M. Their models are designed for larger deals, often working with institutional buyers and commanding high minimum fees or monthly retainers.
The process is slow, communication is sporadic, and their buyer networks may not align with your business venture’s actual audience.
One business owner we worked with shared how their previous advisor rarely updated them on buyer activity, leaving them in the dark for months. Once Baton stepped in, we structured the process: Qualifying buyers, packaging the opportunity professionally, and guiding the seller through diligence to a successful close.
These aren’t isolated stories. Too many sellers conducting initial approaches alone—or with advisors who aren’t built for their size—find themselves stuck, frustrated, or accepting less-than-ideal offers.
How Baton Makes M&A Advice More Accessible (and More Effective)
Baton Market was built to solve these problems head-on. We combine advanced technology, thoughtful process design, and human expertise to help small business owners achieve better results—faster.
Here’s how we do it differently:
Free valuations and tiered service levels: Get clarity on your business’s worth upfront, with support plans that match your needs and budget.
Transparent timelines and weekly updates: Know where your deal stands every step of the way.
Access to a pre-qualified buyer network: Skip the tire-kickers. Our buyer pool is vetted, serious, and ready.
Streamlined NDA process: One NDA grants buyers access to multiple listings, keeping things simple and efficient.
Dedicated support without the retainer: You get the benefit of experienced deal management—without paying for services you don’t need.
By addressing the real operational realities of small business sales, Baton helps deals close 50% faster than traditional advisors without sacrificing quality or outcomes. Learn more about how our approach compares in our M&A advisory guide.
What Questions Should You Ask Before Choosing an M&A Advisor?
Selecting the right partner to help sell your business is one of the most important decisions you’ll make in the process.
Here are five key questions to ask any potential advisor:
How do you find and qualify buyers?
What’s your average time-to-close for deals like mine?
How do you communicate throughout the process?
Do you charge a retainer, a success fee, or both?
How do you calculate my business’s value?
When you partner with Baton, these answers are clear from day one. We believe in transparency, not surprises. To prepare for your first conversation with a buyer, check out our resource on what to expect and how to prepare for your first buyer-seller meeting.
How Strategic Positioning Supports Future Success
For small business owners, thinking beyond the immediate sale can open doors to greater opportunity. Having a clear acquisition strategy positions your business well in the current market and sets the foundation for your own future success—whether that means moving on to your next business venture, securing your personal finances, or funding retirement plans.
At Baton, celebrating leadership and innovation in dealmaking is key to advancing the field. That’s why we stay informed on industry events like the Emerging Leaders Awards, the Annual Emerging Leaders Awards, and the 16th Annual Emerging Leaders ceremonies.
These platforms, alongside gatherings such as the Leadership in Dealmaking Summit, 2025 Leadership in Dealmaking, and the International M&A Awards, spotlight the leaders shaping the future of mergers and acquisitions.
Additionally, opportunities like advertising alliance sponsorship opportunities help connect industry professionals and foster collaboration across the advisory firm landscape. Staying engaged in these conversations ensures that Baton continues to offer the best technology and advisory services to the business owners we support.
Ready to Explore Selling Your Business the Smarter Way?
Selling your business is too important to leave to chance—or to settle for support not built for your success. Baton Market offers a simplified selling process with the right blend of technology and expert guidance to move forward with clarity and confidence.
Get your free business valuation today and see how Baton makes selling smarter, faster, and better.