Ask These Questions Before Hiring an M&A Advisor
Hiring an M&A advisor is a big decision. The right advisor can make the difference between a successful sale or acquisition and a missed opportunity. But how do you know you’re choosing the right person to guide you through this complex process?
At Robin Hood Consultations (RHC), we’ve made that choice easier by partnering with a network of vetted M&A advisors, each with over ten years of experience and deep expertise in their niche. Our advisors are not just skilled at managing deals; they’re experts at maximizing outcomes for business owners like you. But don’t just take our word for it—there are key questions you should always ask before hiring any M&A advisor.
Here are some questions to help you evaluate if an advisor is the right fit for your sale.
1. What Is Your Experience in My Industry?
Every industry has its own nuances, especially when it comes to mergers and acquisitions. A great M&A advisor should have experience in your specific field. If they’ve worked with companies like yours before, they’ll have a much better sense of the challenges, opportunities, and typical deal structures in your industry.
At RHC, we ensure that our advisors are industry specialists, which means they know the ins and outs of your business sector, making the process smoother and more tailored to your needs.
2. What Is Your Approach to Valuation?
Valuing your business accurately is key to getting the best deal. Make sure the advisor explains how they approach valuation and which methods they’ll use (Discounted Cash Flow, Comparable Company Analysis, Precedent Transactions, etc.). The advisor should also help you understand the assumptions behind their valuation.
RHC’s advisors are skilled at defending valuations, ensuring you get the highest possible value. They use a combination of methods to triangulate the most accurate and defendable valuation, backed by years of experience.
3. How Do You Find and Engage Potential Buyers?
An M&A advisor’s network is crucial. You want someone who has access to the right buyers or investors for your business. Ask how they plan to market your business and how they intend to attract and engage serious buyers. A good advisor will have strategies beyond simply listing your company and hoping for interest.
At RHC, we only work with advisors who have access to deep buyer networks. Our advisors don’t just list businesses; they strategically match them with the right buyers, creating competitive environments that lead to higher offers.
4. What Is Your Fee Structure?
Understanding an advisor’s fee structure upfront is critical. Some advisors charge a success fee (a percentage of the deal), while others may require a retainer or a combination of both. Be sure you understand how they get paid and what services are included in their fee.
RHC ensures transparency in our fee structures. Our advisors offer clear terms with no hidden fees, so you know exactly what you’re paying for and when. We believe in fair pricing that reflects the value you receive.
5. How Do You Handle Confidentiality?
Confidentiality is a big concern when selling a business. You don’t want sensitive information about your company getting into the wrong hands. Make sure the advisor has a solid plan in place to protect your information throughout the process.
RHC’s advisors are committed to confidentiality at every stage. We use industry-best practices to protect your sensitive business information and ensure that only qualified buyers get access to the details they need.
6. How Will You Support Me Throughout the Process?
Selling your business is a long and often emotional journey. You’ll want an advisor who is with you every step of the way, offering guidance, answering questions, and helping you make informed decisions. Be clear on how involved they will be and what level of support you can expect throughout the process.
At RHC, our advisors are hands-on and personally involved throughout the entire process. You can count on regular updates, strategic advice, and full transparency from start to finish.
Conclusion
Choosing the right M&A advisor is a critical decision that can make or break the success of your sale. By asking these questions, you’ll gain insight into their experience, approach, and the value they bring to the table. At Robin Hood Consultations, we’ve done the hard work of vetting our advisors to ensure they are kings in their niches, with over ten years of experience each.
Make sure you feel confident in your choice — the right advisor doesn’t just manage the transaction, they maximize your outcome.
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