Not every business sale needs an advisor. But most businesses worth more than $500K benefit significantly from professional representation. Here’s how to know when it’s time.
Signs You Need an Advisor
You’ve been approached by a buyer. This is the most common trigger. A buyer has expressed interest, and you need to know whether it’s a fair deal — and whether there are better offers available.
You’re seriously considering a sale. If you’ve moved from “maybe someday” to “probably within the next 1-2 years”, it’s time to have an initial conversation. Early advice shapes better outcomes.
The transaction is complex. Multiple shareholders, cross-border elements, earnout structures, regulatory approvals — complexity needs professional management.
You want to keep running the business. Managing a sale process while running a business is extremely difficult. An advisor handles the process so you can focus on performance.
You want competitive tension. Accepting the first offer that comes along almost always leaves money on the table. An advisor creates a competitive process that drives the best price.
What a Good Advisor Does
- Values your business independently and sets realistic expectations
- Prepares your business for market — identifying and addressing issues before buyers see them
- Creates professional materials — Information Memorandum, financial model, teaser
- Identifies and approaches buyers — a targeted, confidential process
- Manages the process — timelines, information flow, buyer communication
- Negotiates on your behalf — price, structure, terms, warranties
- Drives the deal to completion — coordinating lawyers, accountants, and other advisors
What It Costs
Most corporate advisors charge:
- Retainer fee — a monthly or upfront fee covering preparation and process management ($5K-$20K/month depending on complexity)
- Success fee — a percentage of the transaction value, typically 1-5%, scaled inversely with deal size
The success fee aligns your advisor’s incentive with your outcome — they only earn the bulk of their fee when the deal completes.
How to Choose
Ask these questions:
- Who will work on my engagement? Ensure senior professionals are involved, not just at pitch time.
- What comparable transactions have you completed? Look for experience in your industry and size range.
- How will you find buyers? Understand their approach and network.
- What’s the expected timeline and process? A credible advisor will give you a realistic roadmap.
- How do you handle confidentiality? This is critical — especially if staff, customers, or competitors shouldn’t know.
When NOT to Use an Advisor
An advisor may not be necessary if:
- The business is valued under $500K (a business broker may be more appropriate)
- You’re selling to a known party (family member, business partner) and just need legal documentation
- The transaction is very simple with no competitive process needed
For everything else, the incremental sale price typically far exceeds the advisory fee.
Contact Miro Capital for a confidential initial conversation — no obligation, no cost.