When first-time sellers engage with an advisor, I find most have a common belief:
“I hire them. They sell my business.”
While this may be true on a basic level, the role of an advisor is much more complex.
The right advisor doesn’t just sell your business, they shape the process and help you navigate one of the most complex transactions of your life.
This week’s newsletter breaks down what working with a great M&A advisor should look like, and what to look for when selecting one for your deal team.
We’ll cover:
- 3 insights on what separates great advisors from the rest
- 2 frameworks that define how they operate
- 1 action step to make sure you’re aligned from day one
3 Insights About Working With an Advisor
1. The best advisors have sat in the seller’s seat before
There are a variety of ways to evaluate experience. The number of “deals closed” may be a starting point, but you should also look for advisors with a real operating perspective.
An advisor who has operated a business themselves understands what’s at stake financially and emotionally.
The best advisors know what it feels like to negotiate terms and make decisions that affect your team and the legacy of your business.
2. The best advisors take time to understand your business
Before going to market, a strong advisor will spend time learning how your business works. If you operate in an industry with specific regulations or nuances, you may want an advisor with similar experience.
In either case, you want someone who takes the time to understand financials, operations, customers, and growth drivers. This upfront work helps your advisor position the business correctly and build a narrative that resonates with the right buyer pool.
3. The best advisors ask hard questions
This point is often overlooked. While you want an advisor you trust and feel comfortable with, you also need someone who challenges assumptions and asks tough questions.
For example, a great advisor might question your valuation expectations (if they’re unreasonable) or dig into why you really want to sell your business to ensure the outcome aligns with your goals.
2 Frameworks That Define a Great Advisor
The Advisor as Process Driver
Don’t think of your advisor as someone you pay to find a buyer. Reframe their role as someone who guides a structured process to help you get a deal that’s right for you.
This “process driver” framework allows you to collaborate with your advisor to prepare the business for sale, manage timelines, and negotiate terms.
The sale of your business is the end goal, but the best advisors help you move through each step with a clear, structured process.
The Experience Spectrum
Industry experience is important, but so is experience dealing with different buyer types. The best advisors have worked across a range of buyer types and understand how each approaches a transaction.
Ideally, your advisor has experience selling to private equity groups, strategic buyers, and individual owners.
Different buyer groups look for different things in your business, and positioning it to appeal to them requires a different approach.
List of Our Completed Transactions
1 Action Item This Week
Start a conversation
Most advisors offer free consultations or are open to a conversation via phone or LinkedIn.
If you’re considering selling your business or even just exploring your options, reach out and start a conversation.