By: Jude David
90% of companies listed for sale never make it to the closing table. Of the lucky 10% who make it there, 75% are dissatisfied a year later. And in my career of successfully selling hundreds of businesses, I can count on one hand the number of times business owners have asked for references. If they hire a new employee to make the coffee in the morning or sweep the floors, they check references, but when making the most important decision of their career–the advisor who will either make or break their business sale–they take it on faith!
Most business owners are biting at the first offer or the first advisor that comes along, and just like that lousy first date in high school, the first suitor is not usually the right one.
Don’t let your clients fall for a smooth talker who can’t get a deal done. Make sure they choose an experienced M&A advisor.
Stats from PricewaterhouseCoopers and Exit Planning Institute.