Deciding to sell your business is a monumental step, fraught with complexities and requiring meticulous planning. Engaging the right M&A advisor can make all the difference. Here are 10 crucial questions to ask to ensure you choose an advisor who aligns with your goals:
What experience do you have with businesses in my industry and size?
Understanding their track record in similar transactions can indicate their suitability for your specific case. An advisor with industry-specific experience will better understand the nuances of your business.
How will you determine the valuation of my business?
This question probes into their methodologies. Ensure they’re not just generating numbers out of thin air but using robust valuation techniques, such as adjusted EBITDA, market comparables, or discounted cash flow analysis.
Can you walk me through your process of preparing a business for sale?
Knowing the steps from start to finish can help you gauge their thoroughness and strategy. Preparation might include financial audits, operational improvements, or strategic positioning.
What strategies will you employ to find the right buyer?
Ask how they intend to market your business through targeted outreach, auctions, or leveraging their network. The right approach can significantly impact the sale’s success.
How do you maintain confidentiality during the sale process?
Protecting your business’s sensitive information is crucial, especially if you plan to continue operations if the sale fails.
What are your fees, and how are they structured?
Clarify if they work on a retainer, success fee, or a combination. Understanding all potential costs involved is essential for financial planning.
Can you share some case studies or references from past clients?
Real-world examples or testimonials can provide insights into their effectiveness and client satisfaction, offering peace of mind.
How do you manage the due diligence process?
Due diligence can be overwhelming; knowing how they streamline this can ease the transition and reduce stress.
What potential risks or obstacles do you foresee in selling my business, and how do you plan to mitigate them?
This question tests their foresight and strategic planning capabilities. An experienced advisor should anticipate potential issues and develop strategies to address them.
What additional resources can your firm provide to help me through the planning and selling process?
Having easy access to vetted resources such as legal, accounting, financial and tax planning as well as real estate professionals offers sellers immediate assistance using professionals with M&A experience**.**
TREP Advisors firmly believes that exit strategies should align with the owner’s personal goals, financial needs, and the business’s market position. Each transaction has its advantages and challenges, and the best strategy will depend on numerous factors, including market conditions, business health, and personal circumstances.
With over 125 years of collective business ownership experience, the TREP Advisors team offers personalized strategies to help owners maximize their businesses’ value and achieve their personal and economic freedoms. Ask us how!
