Selecting an Advisor

Selecting an Advisor

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When evaluating various M&A professionals and business brokers, ensure that you have complete answers to all your questions. Your evaluation becomes ever so more important to selecting the right individual.

CREDENTIALS

  • Is he/she a business broker/ Business Intermediary, or merely a real estate broker peddling businesses?
  • Is he/she affiliated with key business brokerage organizations?
  • Does the professional have a financial education, is he familiar with tax issues?
  • Is the broker/ Business Intermediary the principal, or simply an employee with little vested interest?
  • Other than the brokerage business/ Business Intermediary, has the broker/ Business Intermediary run an own business before and thus, can relate to your concerns?

VALUE OF YOUR BUSINESS

  • How does the professional plan to establish the value of your business?
  • Does he work with reputable valuation firms?
  • Is the valuation simply an in-house computer estimate (with a large upfront fee)?
  • Can he show valuation samples, and how do they relate to your business?
  • Will the valuation firm “stand behind” the appraisal if need be?
  • Will there be a “free update” of the valuation in a year from now, if needed?

CONFIDENTIALITY

  • How will the broker/ Business Intermediary ensure confidentiality of your business?
  • What is the buyer qualification process? In writing?
  • Can the professional show you specific documents?
  • Will you be protected from unqualified “tire kickers” and “wanna-be” buyers?

UPFRONT FEES/ RETAINER

  • Is the broker/ Business Intermediary confident in selling your business
  • Does the broker/ Business Intermediary charge advertising, traveling or any other costs?
  • How much is the professional at risk with his efforts?

MARKETING

  • How will the firm attract buyers for you?
  • Can he/she show you a marketing plan?
  • Does your broker/ Business Intermediary share commissions outside of a network?
  • Does the broker/ Business Intermediary have international experience to attract foreign buyers?

THESE ARE ALL VALID QUESTION YOU SHOULD RAISE WHEN EVALUATING A PROFESSIONAL. THEY ARE IMPORTANT IN FINDING THE RIGHT INDIVIDUAL TO WORK WITH YOU IN OBTAINING YOUR GOALS.

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