How to Choose the Right M&A Advisor

For tech founders and CEOs preparing for a transaction, selecting the right M&A advisor is a decision that can define the success—or failure—of the outcome. From valuation strategy to buyer engagement and negotiation leverage, your advisor shapes nearly every stage of the process. But not all advisors bring the same depth, discipline, or sector fluency.

This guide walks through the key criteria to evaluate when choosing an M&A advisor, with a focus on software and technology transactions where industry nuance matters most.

1. Clarify Your Strategic Objectives

Before evaluating advisors, get clear on your own priorities. Are you aiming for a near-term exit or raising growth capital? Seeking strategic synergies or prioritizing financial return? Different advisors excel in different mandates.

For example, a vertical SaaS founder targeting a full acquisition will need a firm with expertise in subscription-based valuation models, retention metrics, and sector-specific buyer relationships. As explored in Valuation Multiples for SaaS Companies, understanding how to position ARR, LTV:CAC, and net retention can dramatically affect outcomes.

2. Focus on Industry-Specific Experience

Generalist advisors may understand deal mechanics, but industry-specific knowledge is what drives real differentiation. Look for advisors who live and breathe your market—whether that’s martech, AI, fintech, or enterprise SaaS.

Relevant questions to ask:

• Have they completed transactions in your vertical?
• Do they understand the KPIs that matter to buyers in your space?
• Can they reference deals of similar size and complexity?

Firms like iMerge specialize in software and technology transactions, giving them a vantage point on what acquirers value—and how to position your company accordingly.

3. Research Their Track Record and Deal History

Past performance is the best predictor of future results. Review the advisor’s transaction history for companies of similar size, structure, and industry. Case studies, tombstones, and founder references are all helpful here.

As noted in M&A Transaction Types and Structures, deal mechanics can vary significantly based on the business model and exit strategy. Advisors with a deep bench of relevant deal experience are better equipped to avoid pitfalls and structure favorable terms.

4. Evaluate Reputation and Credibility

An advisor’s network and reputation matter—not just to you, but to the buyers they’ll be engaging. Acquirers are more likely to respond quickly and engage seriously when approached by a trusted intermediary with a known track record.

Check for:

• Peer reviews and referrals from CEOs who’ve sold businesses in your space
• Relationships with credible PE firms and strategic acquirers
• Commitment to confidentiality and ethics throughout the deal process

5. Assess Cultural Fit and Communication Style

You’ll be in close contact with your advisor—sometimes daily—for months. That relationship has to work. Do they communicate clearly? Do they ask smart questions? Do they understand your company’s vision and story?

Look for someone who listens well, translates complexity into clarity, and matches your tone when speaking with buyers. Cultural fit can influence not only internal alignment but also how your company is positioned in market conversations.

6. Review Professionalism and Execution Discipline

A great M&A advisor brings more than ideas—they bring process, accountability, and execution. Gauge how they approach:

• Project planning and timeline management
• Information requests and data room setup
• Preparation of key materials like CIMs or financial summaries

As discussed in 8 Reasons to Hire an M&A Advisor in 2023, deal timelines can be demanding. A disorganized advisor can lead to buyer fatigue or missed windows.

7. Understand the Fee Structure and Value Proposition

Advisory fees typically fall into one of three structures:

• Success Fee Only: A percentage of the final transaction value, paid only if the deal closes.
• Retainer + Success Fee: A monthly or upfront fee that’s credited against the success fee upon closing.
• Flat Fee or Project-Based: More common for valuation or strategic advisory engagements.

The cheapest advisor isn’t always the best. Focus on the ROI—will they deliver a better valuation, a smoother process, or more strategic acquirers? In many cases, experienced advisors more than pay for themselves through better deal terms and fewer risks.

Conclusion

Choosing an M&A advisor isn’t just a service engagement—it’s a strategic partnership. The right advisor brings insight, structure, and access that can materially shape your outcome. For software and tech companies, where valuation drivers are nuanced and buyers are sophisticated, sector-specific experience is paramount.

Take the time to evaluate cultural fit, communication, and execution style alongside experience and credentials. When you find the right partner, you’ll gain more than a broker—you’ll gain an advocate with the judgment and discipline to help you exit on your terms.

If you’re preparing for strategic discussions with buyers or investors, contact iMerge for a confidential M&A consultation tailored to your company’s goals.