Regalis Capital says buyers should vet acquisition advisors with three tests

Regalis Capital published a three-part framework for SBA 7(a) business buyers to evaluate acquisition advisors before hiring one. The firm says the right advisor should work for the buyer, cover the full market and have enough staff to run the deal from search to closing.

Why it matters: - SBA 7(a) buyers often enter acquisitions without knowing how to judge the advisor helping them. - Regalis Capital argues that the wrong advisor can leave a buyer negotiating against a seller-paid broker, missing live deals and underestimating the work needed to close. - The framework is meant to help buyers quickly sort broker-style marketing from true buy-side representation.

What happened: - Regalis Capital published three tests it says business buyers should use before hiring an acquisition advisor. - The firm framed the questions around who pays the advisor, how much of the market the firm covers and who actually works the deal. - Regalis Capital says these questions matter more than asking which firm is cheapest or which firm has the “best deals.”

The details: - Test one is compensation. A seller-paid broker works for the seller, while a buy-side advisory firm is paid by the buyer and works for the buyer. - Regalis Capital says a buyer without an advisor is often negotiating against someone who is paid more when the price goes up and who does those negotiations every week. - Test two is market coverage. Regalis Capital says buyers usually do not face a shortage of listings, but a shortage of time and process. - The firm says a proper search process should review the full listed market on a schedule and score every live listing against a written buy box. - Test three is headcount. Regalis Capital says buying a business is a document-heavy process that takes roughly 30 to 40 documents to get a lender to yes and 60 to 100 documents to reach closing. - Regalis Capital says the work also includes valuation, an offer, a letter of intent, a lender package and diligence coordination. - The firm says it runs a 108-person buy-side acquisition team, growing to 120, with more than $300 million under contract and closing and 200+ active buyers. - Regalis Capital says it sourced 171,190 deals last year, vetted 4,124 full deal packages and reached 294 accepted offers. - The firm also published free guides at learn.regaliscapital.com covering questions to ask an acquisition advisor, SBA 7(a) deal structure and how to value a business using SDE and EBITDA multiples.

Between the lines: - Regalis Capital is positioning itself as a specialist in a crowded search-advisory market where many firms use similar language. - The emphasis on process volume, document handling and screening suggests the firm is selling execution capacity, not just introductions. - The message also reflects a broader tension in lower-middle-market dealmaking: buyers want access, but they also need structure, speed and lender-ready support.

What’s next: - Buyers using SBA 7(a) financing are likely to continue comparing advisors based on compensation model, search coverage and operational support. - Regalis Capital is using this framework to reinforce its own pitch as a done-for-you acquisition service for small business buyers. - The firm says more educational material is available through its learning site and main website.

The bottom line: - Regalis Capital wants buyers to judge advisory firms by who they serve, how broadly they search and whether they can actually close the deal.