The terms get used interchangeably by people outside the industry, but sell-side vs buy-side M&A advisory describes two genuinely different jobs, working for two different clients with two different goals.
Quick Answer: Sell-Side vs. Buy-Side M&A Advisory
Sell-side vs buy-side M&A advisory comes down to who the advisor represents: sell-side advisors represent the company being sold and work to maximize price and terms for the seller; buy-side advisors represent the acquirer and work to identify, evaluate, and negotiate a favorable acquisition.
What a Sell-Side Advisor Does
Sell-side advisors prepare the company for sale, build marketing materials, identify and approach potential buyers, run a competitive process, and negotiate on the seller’s behalf to maximize value.
What a Buy-Side Advisor Does
Buy-side advisors help acquirers identify targets that fit their strategy, run due diligence, structure financing, and negotiate favorable terms, essentially the mirror image of the sell-side role.
Can the Same Firm Do Both?
Some firms offer both services, though not typically on the same deal, since that would create an obvious conflict of interest between the buyer and seller they’re representing.
Why This Matters If You’re Selling
As a seller, you want a sell-side advisor working exclusively for your interests, not one who’s also trying to find you a buyer they represent on the other side of the table. This is part of why understanding when a sale becomes an M&A deal matters, it determines what kind of advisory relationship you should be looking for.
FAQ
Do I need a sell-side advisor even for a smaller deal? The principle applies at any size, having an advisor working exclusively for you matters regardless of deal size.
Can I use a buy-side advisor if I’m also looking to sell later? Generally, no, at least not the same advisor on related deals, due to the conflict of interest.
How do fees typically work for each side? Both are typically success-fee based, though structures vary by firm and deal size.
Does sell-side advisory include valuation? Yes, building and defending a valuation is a core part of the sell-side advisor’s job.
Is Truforte a sell-side advisor? Yes, we represent sellers, not buyers, on our advisory engagements.
Want a sell-side advisor working exclusively for you? Talk to Truforte Business Group.