What Questions Should You Ask Before Hiring an M&A Advisor?

The first meeting is the interview. Here's what to ask.

On experience

• How many transactions have you personally closed in the last three years?
• How many of those were in my size range and industry?
• What deals have not closed, and why?

On process

• Walk me through your process from engagement to closing.
• How do you identify and approach buyers?
• How many buyers typically enter your process, and how many end up bidding?

On the team

• Who will I be working with day to day?
• How many active engagements do you have right now?
• Who handles the analytical work, and who runs negotiations?

On fees

• What is the total expected cost, based on a realistic outcome?
• Is the work fee credited against the success fee?
• Are there any additional costs I should expect (legal, quality of earnings, marketing)?

On references

Ask for three references from owners who closed a deal with them in the last two years. Then actually call them. Ask what they wish they had known before signing, and whether they'd hire the advisor again.