Advisers & fees
How to choose a business sale adviser
How to choose a business broker or sale adviser: experience, sector knowledge, buyer reach, fees and the questions to ask before appointing anyone.
Why Experience Matters When Selling Your Business
Look for a business sale adviser with relevant market knowledge and experience of completing comparable transactions. Ask how they would position your business, anticipate likely challenges and manage the sale process.
Common advisory fee approaches
Retained engagement
An initial engagement fee with a lower success fee on completion.
Common where significant preparatory work is required.
Success fee
A fee calculated on the outcome, payable on completion.
The adviser's return depends on completing a transaction.
No upfront engagement fee
No fee before an intermediate stage; some advisers include a payment at Heads of Terms.
Terms vary. Always confirm in writing what is payable and when.
The Entrepreneurial Edge Required For A Successful Business Sale
Experienced entrepreneurial advisers bring a unique perspective to the table. They understand the mindset of a business owner because they’ve walked in your shoes. This entrepreneurial approach means they’re not just thinking about the transaction they’re considering the long-term impact on your legacy, your employees, and your future. Their ability to think like a business owner means they can align their strategies with your personal goals and values, leading to a more satisfying exit experience.
How To Choose The Right Dealmaker Your Business Sale Adviser
Selecting the right dealmaker is about finding someone who understands your vision and is committed to achieving the best outcome for you. Here are some key factors to consider when choosing your adviser:
Track Record:
Look for a proven history of successful sales in your industry. Ask for case studies and discuss previous deals Completed. Make sure you are talking with the adviser who will support you from day one through to completion. Proceed with caution if you cannot meet the actual dealmaker who will act for you.
Industry Knowledge:
Your adviser should have deep knowledge of business, knowledge of your industry, including current market trends, key players, and potential challenges.
Negotiation Skills:
A skilled negotiator can make a significant difference in the final deal. Ensure your adviser has the expertise to secure favorable terms.
Compatibility:
You’ll be working closely with your adviser throughout the process, so it’s essential to choose someone you feel comfortable with and who understands your personal and business values.
Comprehensive Support:
Your adviser should offer end-to-end support, from preparing your business for sale to closing the deal. They should be proactive, communicative, and transparent every step of the way.
Choose an adviser who understands your priorities for the sale, including the future of the business and your own plans. Experience can help you assess the options, but it cannot guarantee an outcome.
What to read next
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