If you’re in the process of merging your business with another company, you will likely benefit from working with an intermediary. Use the following questions and answers to help you find an intermediary who is right for your business.
- Question: What Is an Intermediary?
- An intermediary is a person who links your company with a business you are buying or merging with. It is their job to help bridge an agreement between your company and the business you are buying, so you can move forward with day-to-day operations.
- Question: What Is the Role of an Intermediary?
- An intermediary tends to have an important role during a merger. It is this person’s job to sell a company to investors or to find an investment opportunity for buyers. He or she will have to get in contact with buyers or sellers, structure a deal that is favorable to their client and perform due diligence on the buyer or seller. Because of this important role, you should look for an intermediary who has experience in your industry, a friendly demeanor, confidence in his or her job, an understanding of business, accounting skills and a creative outlook.
- Question: What Type of Education and Experience Can Be Expected?
- In order to successfully merge two businesses together, you have to work with an intermediary who knows what he or she is doing. This means that you want to find someone with proven experience working with businesses of your company’s size. You should also look for an intermediary with at least some education in a business-related field. Realistically, experience working with companies similar to yours may end up being more valuable than a bachelor’s degree in business.
- Question: Should the Intermediary Be Licensed?
- Many intermediary companies require that their employees have certain licenses and certifications. You should also check with the legal regulations in your state as these types of requirements may vary from location to location.
- Question: What Involvement Can and Should Be Expected?
- Because an intermediary is playing such an important role in your merger, you should expect someone who will be quite involved in the process. An intermediary should help with negotiation, but he or she shouldn’t help figure out all of the details of the purchase because that is a job for a lawyer. Similarly, an intermediary should help your company find potential investment opportunities, but shouldn’t perform a financial analysis to help you figure out what you can spend because that’s a job for an accountant.
- To put it simply, you should be able to expect quite a bit of help throughout the entire negotiation process. At the same time, if you don’t need that much help, you can expect that as well.
- Question: Should There Be a Confidentiality Agreement in Place?
- Intermediaries will likely hear sensitive information. It is absolutely okay, and even suggested, that you have some sort of confidentiality agreement in place. It’s just good business on the part of the intermediary. Don’t feel bad for asking your intermediary to sign some sort of confidentiality contract. If you plan on doing this, you should try to get it out of the way right away. This will help ensure that both you and your intermediary are on the same page from the beginning of your process.
- Question: Is it Okay to Ask for References?
- Like with many other industries, it is okay for you to ask for references. You want to make sure that you’re hiring an intermediary who will help your business. That means you need proof that this specific intermediary has experience working with companies like yours. Ask for references, and if you don’t see what you’re looking for, feel free to keep searching.
The content on our website is only meant to provide general information and is not legal advice. We make our best efforts to make sure the information is accurate, but we cannot guarantee it. Do not rely on the content as legal advice. For assistance with legal problems or for a legal inquiry please contact you attorney.