10 Ways Advisors Pay For Themselves When You Sell Your Business

Business owners are responsible with money. They have to be. Owners pay the bills, make the payroll, invest in the future, and build valuable enterprises. And, while good business owners don’t spend money foolishly, they understand that investing in expertise is important: accountants, attorneys, and other trusted advisors.

While the desire to save may be real, hiring outside counsel is a wise choice. And when it comes to selling a business – frequently an owner’s life’s work – hiring an advisor is critical.

It’s important to remember that selling a business is a different skill set than building or running one. a successful one, and Business deals deals are a team sport.

Here are 10 ways business advisors pay for themselves while helping you sell your business:.

1. You Save on attorney fees.
   Attorneys charge by the hour, but intermediaries charge success fees at the end of the deal.  Relying on an attorney to do work that an intermediary should be doing as part of his or her success fee is an unnecessary and  inefficient use of resources.

2. They are professional negotiators.
   Enabling a 3rd party to present offers and suggest and relay responses is a huge leverage point in negotiation. Take advantage of the expertise an experienced negotiator has to offer

3. Save time and get the in a deal closed faster.
   Experienced deal makers know the appropriate steps in the process of selling a business. They know how to get deals done quickly by keeping all parties on track and accountable.  Inexperienced buyers and sellers working with legal counsel often get tied up in due diligence for months or even years, and many times the deals never make it to the closing table.

4. Push the deal forward.
   Intermediaries are considered the “quarterbacks” of the deal.  While deals can have dozens of stakeholders involved, it’s primarily the owner’s intermediary who is the central figure pushing forward with a plan to cross the finish line successfully.

5. Communicate directly with all parties.
   It’s important to remember that attorneys are prohibited from speaking directly with principals who have representation on the other side of the deal, but intermediaries can speak to anyone in a deal.  Direct communication saves time and money

6. Allow the owner to maintain business value.
   Owners who represent themselves risk losing focus on running their business. They often take their foot off the gas when it comes to sales and operations. Intermediaries can alleviate the time and stress of juggling multiple buyers and allow an owner to focus on his or her core duties.  Selling a business is a full-time commitment and owners should stay focused on making sure their business opportunity maintains its value.

7. Bring the experience.
   Most buyers and sellers have not done enough deals to know when and where things go south.  In fact, most accountants don’t specialize in business valuations and have never been involved in the sale of a business. Intermediaries bring the experience of handling the common crises that derail so many deals.

8. Find the money.
   Deals can’t get done without money, and intermediaries know what can be financed, and how to find the money through the right deal structures and financial partners.

9. Coordinate the closing.
   Closing a deal is a complicated project with significant logistics that attorneys can use help with.  Intermediaries add value by assisting in the minutia such as identifying work in progress, calculating prorations, and assigning deposits.

10. Getting the deal done.
    Ultimately, the deal that doesn’t get done is the most significant waste of time and money that can occur. In business brokerage there is a saying, “deals die three times before they close.” An intermediary can help revitalize these inevitable occurrences and ensure the seller and buyer leave the table with closure.

Smart business owners invest in the right resources to achieve success.  Intermediaries serve a vital role in transactions to create competition, efficiencies, and processes to get deals done.  The value they bring should cover their cost, and then some.