Investment Bank vs. Business Broker: Which Should You Choose?
When it comes to taking your established business to the next level, enhancing your capabilities, or planning for a successful transition of ownership, selecting the right advisory team is crucial.
As an owner-founder or c-level executive running a mature company, understanding the key aspects of the M&A landscape can help you make informed decisions and achieve financial objectives.
While investment banks and business brokers may seem to offer similar services, there are significant differences between the two. As an investment bank, REAG provides a specialized approach tailored to the unique needs of mature businesses. We prioritize the following key factors:
- Deep industry expertise and experience with complex transactions for established companies
- Proven track record of successful M&A, recapitalization, and growth through acquisition
- Extensive network of lenders, strategic acquirers, private equity firms, and family offices
- Dedicated, responsive team that takes the time to understand your challenges and develop a strategic plan to reach your unique goals
How Do Businesses Reach Their Strategic & Financial Objectives?
At REAG, we understand that as the owner of a mature business, your needs are multifaceted and extend beyond just financial considerations. You require an advisory team that can provide strategic guidance, industry insights, and access to the right partners to help you capitalize on growth opportunities, optimize your operations, and secure your legacy. Our expertise lies in crafting customized strategies that maximize your company’s value and position you for long-term success, whether through organic growth, strategic acquisitions, obtaining growth capital or a well-planned ownership transition. REAG offers a comprehensive suite of services, including:
The Benefits of Investment Bank M&A
When an existing business acquires another business or multiple businesses through M&A, the buyer often has a number of strategic priorities in mind, which include:
- Enhancing core business infrastructural needs
- Purchasing a competitor to achieve growth expectations
- Gaining access to intellectual property or a talented workforce
- Enhancing economies of scale
- Strengthening balance sheets
As an investment bank, REAG understands these priorities and works closely with our clients to ensure that their M&A transactions align with their overall business strategy. We take a comprehensive approach to M&A, considering not only the financial aspects of the deal but also the operational, cultural, and strategic implications. By taking a holistic view of M&A, we help our clients achieve their growth objectives while minimizing risk and maximizing value.
What Types of Services Does REAG Offer?
When it comes to business services, there are several key offerings to consider. These include MBO/LBO (Management Buyout/Leveraged Buyout), ESOP (Employee Stock Ownership Plan), strategic sale, minority/majority recapitalization, and generational transfers. Each of these strategies caters to different business needs and objectives, such as ownership transition, employee involvement, or financial restructuring.
At REAG, our investment banking expertise allows us to guide you through exploring strategic options beyond a full sale such as raising growth capital for acquisitions or recapitalization that enables you to take some chips off the table while maintaining control. Our tailored solutions are designed to strengthen your business and position you for a greater payoff when you’re ready to exit on your terms. We pride ourselves on our:
- Ability to understand complex situations
- Expertise in both traditional and non-conventional strategies to optimize your company’s value
- Skill in identifying and communicating effectively with stakeholders
- Capacity to consider alternative strategies
- Track record of creating winning outcomes for business owners
With our comprehensive approach, we help you navigate the intricacies of your business landscape, ensuring that every decision aligns with your long-term goals and maximizes your company’s potential.
What Types of Businesses Work with REAG?
REAG specializes in the lower middle market, focusing on companies with profitability and growth potential, with an emphasis on serving:
- Regional, national and global markets
- $2M+ EBITDA
- Scalable businesses
We provide tailored solutions for companies across diverse geographic scales, matching each business’s unique scope and ambitions. Our typical clients have an EBITDA of $2 million or more, demonstrating a solid financial foundation. We partner with scalable businesses that show potential for expansion and increased market share. These companies often feature:
- Innovative products or services
- Strong management teams
- Need for strategic guidance in their next growth phase
From family-owned businesses considering ownership transitions to rapidly growing companies targeting new markets, REAG offers the expertise to drive success across various industries and business models.
Which Buyer Type is Right for My Business?
Unlike business brokers, who primarily focus on smaller, local deals (less than $2 million EBITDA) involving individual buyers, entrepreneurs, or local businesses, REAG targets regional, national, and global strategic, corporate, and institutional buyers. This approach enables our clients to achieve higher multiples and secure the best possible exit strategy. By attracting a wider pool of sophisticated buyers, REAG can create a competitive bidding environment that maximizes the value of the business being sold.
The Importance of Choosing REAG as Your Investment Bank
Choosing the right advisory team is one of the most important decisions a business owner can make. The right team can help you navigate complex transactions, maximize value, and achieve your strategic objectives.
At REAG, we take pride in our distinctive approach that combines deep expertise, extensive relationships, and an unwavering commitment to our clients’ success. Our expert advisory team leverages advanced tools and comprehensive industry knowledge to develop tailored strategies that maximize transaction value and help clients achieve their objectives.
By choosing REAG as your partner, you gain access to a collaborative team of experienced professionals who will serve as your trusted advisor to navigate transactions, optimize valuations, and ensure an efficient, successful process.
If you are ready for the next chapter of your journey, reach out, and let’s begin together.
