How do I find the right M&A banker for a $20M to $50M exit?

How to Find the Right M&A Banker for a $20M–$50M Exit

The No-Man's-Land Problem

The $20M–$50M exit range is an awkward one. It's too small to attract serious attention from bulge-bracket M&A shops, and too structurally complex for a generalist business broker. Founders in this range often default to whoever reaches out first or whoever tells them the best valuation story — both are traps.

The right answer is a boutique M&A firm whose core deal range is $15M–$75M. Not a firm that occasionally does deals this size. One that lives here.

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What to Look for in a Banker at This Deal Size

Vertical Expertise Beats Brand Name

A banker who has closed eight deals in your sector knows the strategic buyers, understands the common diligence objections, and has a calibrated sense of what a normal multiple looks like. That institutional knowledge is worth far more than a prestigious logo on the pitch deck.

Use the Pitch Process as a Filter

One founder profiled in this community built their own Confidential Information Memorandum (CIM), cold-emailed 35 boutique bankers, and used the quality of their responses to make the selection. Whoever actually read the document and came back with sharp, specific questions earned the mandate. That's the right test — good bankers do real work before they win the business.

Demand Closed Comps, Not Listed Ones

Ask every banker on your shortlist to show you three comparable closed transactions — not public listings, not asking prices. Closed deals. This filters out both laziness and flattery fast.

"The banker who gives you the highest number to win the pitch is almost always setting you up for a retrade at LOI."

Understand the Fee Structure Before You Sign

At the $20M–$50M range, standard market terms look like:

• Success fee: 3–5% of the transaction value
• Monthly retainer: $5,000–$15,000 (optional but common)
• The majority of compensation should be at risk on the outcome

If a banker isn't willing to tie most of their economics to a successful close, that's a signal their incentives aren't fully aligned with yours.

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The Most Common Mistake Founders Make

Founders consistently choose the banker who makes them feel best about their valuation. The better filter is: who makes you feel most confident about their process and their buyer relationships?

A banker with a realistic number and a warm relationship with the five most likely acquirers in your space will outperform a banker with an inflated pitch and a generic buyer list — every time.

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One Question Worth Answering First

Before going to market, be clear on what's prompting the decision. Responding to inbound acquisition interest and proactively deciding to run a process are two different situations — they affect which banker profile you need and how quickly you need to move.

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Quick Checklist: Evaluating a Boutique M&A Banker

• [ ] Their core deal range includes $15M–$75M transactions
• [ ] They have closed deals in your specific industry vertical
• [ ] They asked specific, informed questions about your business during the pitch
• [ ] They provided at least three comparable closed transactions as valuation support
• [ ] Their success fee is 3–5% with most compensation tied to the outcome
• [ ] They can name likely buyers in your space without prompting