Choose a business sale adviser by checking relevant completed transactions, who will do the work, buyer reach and the written engagement terms. Personal experience of owning a business may help, but it is not a substitute for transaction expertise or evidence of suitable work.
By Tony Vaughan · Published · Last reviewed
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Selling your business is a big step, full of important decisions that can affect your future and the legacy of what you’ve built. At this crucial point, having a knowledgeable business sale advisor by your side is essential. However, finding the right advisor isn’t straightforward. This guide aims to simplify the process, focusing on the value of experience and how to choose the right help.
Why Experience Matters in Advisors
Relevant experience in completed can help an adviser understand buyer expectations and transaction risks. Personal business ownership may add perspective, but is not necessary and does not ensure an accurate valuation or successful sale.
The Importance of 'Sweat Equity'
Sweat equity describes the time, effort and skills invested in building a business. It deserves recognition, but buyers normally assess transferable earnings, assets and risk rather than reimbursing the owner’s effort.
The Risk of Choosing Inexperienced Advisors
An adviser’s lack of personal business ownership does not establish inexperience in transactions. Check their relevant sale history, references and the team that will actually manage your work.
How to Pick the Right Advisor
Compare advisers on relevant transactions, sector understanding, buyer reach and written fees and engagement terms. Discuss how they would approach buyer screening and offer negotiations.
Look Beyond Big Names
It’s easy to be drawn to a well-known firm, but remember that it’s the individual advisor who will make the difference, not the firm’s reputation. Make sure you’re assessing the advisor’s personal experience and expertise.
Do Your Homework
Before settling on an advisor, do thorough research. Meet with several advisors to see who understands your business best and who you think you can work with effectively. This effort can save you from regretting your choice later on.
Questions to Ask Before Appointing an Adviser
Ask which the proposed team has completed and what their role involved.
Entrepreneurial experience may offer perspective, but it is not a guarantee of understanding or valuation accuracy.
Request references where consent is available, and distinguish completed deals from marketing case studies.
Check the adviser’s resources, conflicts and responsibilities rather than relying solely on years in business.
Compare several suitable advisers where practical; there is no required number of interviews.
Choosing the right advisor for selling your business is crucial. Take your time to find someone who not only understands the business sale process but also appreciates the effort you’ve put into building your business. This might take longer than you expect, but finding the right person can make a significant difference in achieving a successful sale.
Common questions
Must my business sale adviser have owned a company?
No. Entrepreneurial experience can be useful, but assess transaction experience, sector knowledge and the ability to manage your particular sale.
What evidence should I request before appointing an adviser?
Ask for relevant completed transactions, references where clients have consented, the proposed buyer approach and the names of the people assigned to your sale.
Which engagement terms deserve particular attention?
Review upfront and success fees, VAT, expenses, exclusivity, termination rights and any fee due on a sale after the appointment ends.
Does sweat equity determine the sale price?
No. Your effort matters personally, but buyers assess transferable earnings, assets, growth opportunities and risk rather than reimbursing time invested.
General information from our archive, not personal advice.
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Talk your options through in confidence
Understand your options before deciding. Enquiries are reviewed by experienced advisers who can discuss suitable options. Submitting an enquiry does not create an advisory engagement.
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