The successful sale of your business is the culmination of many years of hard work and commitment. You may receive unsolicited offers to buy your business or perhaps you’re actively seeking a buyer. Regardless of your situation, selling your business is a major decision that requires careful thought, planning, and attention to detail.
Deciding whether to hire an advisor is a common question many prospective sellers ask. The answer depends on several factors, including the size of your business and current market conditions. Here’s what you need to know when deciding whether to hire an advisor to help sell your business.
Identify the Buyer
If you’ve already identified the buyer or if the buyer is a partner who is already working for your firm, you may not need an advisor. While an advisor can introduce an unbiased independent consultant to the process, many consultants focus on finding and screening qualified buyers.
Remember, even if your potential buyer has worked with you for many years, you always want to hire a lawyer to represent your independent interests when executing buy/sell agreements.
Next, determine your goals for the sale of your business. If you’re looking for the highest offer possible, then structure your business to be as attractive as possible. Here are some strategies that may help:
- Remember that fee-based revenue is more valuable than non-fee-based revenue.
- Recurring trails and commissions are more valuable than non-recurring trails and commissions.
- Have data that demonstrates a firm with a track record of growth. After all, buyers don’t like businesses that aren’t growing. Show buyers that you are running a profitable business.
Taking these proactive steps helps maximize the value of your business and achieve your goal for the best possible price.
Current Market Conditions
When selling your business in a competitive market, consider hiring an advisor. You may need someone with specific industry knowledge and expertise to help seal the deal. An advisor also assesses market conditions so that you have a good sense of what buyers are looking for. This ensures that you find buyers that are the most appropriate for you and your clients’ needs.
Selling your business is a time-consuming process. If you don’t have the time to dedicate to the sale, hiring an advisor makes sense. An advisor helps with all aspects of the deal–from initial planning to marketing your business to potential buyers and negotiating the final sale. This frees up your time to focus on the smooth transition to new ownership.
Finally, consider your experience selling a business. If you’ve never completed a business sale previously, it’s helpful to work with an advisor who can guide you through the process. This ensures that you avoid common mistakes and achieve your desired outcome promptly. Moreover, an advisor provides valuable insights and resources that you may not have access to on your own.
Your Comfort Level
Ultimately, you must be comfortable with your decision. If you’re unsure whether to hire an advisor or not, it’s important to weigh all of the factors discussed above in your sale. Once you gather all of your information, it’s easier to make an informed decision.
Talk to Bridgemark Strategies
Whether you’re looking to sell your business or hire an advisor, Bridgemark Strategies can help. Our team of industry experts and seasoned advisors has the knowledge and skills necessary to navigate the search for a broker dealer, RIA, or strategic partner.
Contact us today to learn how we can help you achieve your goals for selling your business in today’s competitive market.