As an entrepreneur, C-level executive or business stakeholder, when you’ve decided to hire any M&A advisory firm or corporate advisor to help you with your next fundraise, an acquisition or selling your company, you should first consider challenging your assumptions that the best advisor suited for you is the one you’ve just met or the one you’re the closest to.

Here are few reasons why you should always compare advisors based on specific criteria before choosing the one to hire:

• Avoid biased decisions

• Independence = Clear insight

• Availability & focus

• Competitive pricing

Once you have clearly defined the time of advisor you need, often the selection of the advisor for founders or key decision makers is based on a referral of a close contact or an existing partnership/affiliation of some sort. While there is no harm in favoring pre-existing relationships (it’s in fact a human approach and rationale to do so), it is a decision at times that could be biased and lead to a less desirable outcome than what the market might offer.

In other cases, CEOs, board members, shareholders and top executives may at times favor major brands reputable and well known over smaller and niche firms when hiring them. The reason for that is that the choice seems safer from a board standpoint. By giving the mandate to the most prestigious name out there, the board or shareholders build themselves a safety net in case the project fails to materialize, as they would not be blamed for choosing a lesser known or smaller advisory firm. However, while the brand powerhouse may very well do the job, they also might be less flexible, short-term oriented and more expensive than the smaller boutiques that attract clients for their independence, long-term, and high touch approach with you and your company. 

Finally, like anything you want to pay for in life, you should compare the options available on the market before deciding. Therefore, price is an important factor to compare across advisors before choosing the right one. Especially if you receive a first proposal from an advisor, if you have the time, best is that you have at least one to two other options to compare and avoid accepting an overpriced agreed offer. 

When there are over 73’000 advisory firms out there, it’s rather tempting to go with the option that requires the least effort. But it’s certainly not the most exhaustive choice and leaves most likely value, monetary too, on the table. Change is a process turned towards the future. While it’s painful to adapt and endure, it often comes with a positive and long-term outcome.

There are very few disadvantages in comparing advisors before hiring one. One example is the time spent/wasted to engage in a discussion with every new advisor. However, any disadvantage is outweighed by the benefits of finding the right advisor who would impact your transaction’s outcome in a more positive manner.

For more information, please get in touch with us through our contact page or email us at hello@getana.io.

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getana.io (or “get an advisor”) is an independent fintech platform where entrepreneurs and business owners in need of advisory services can search, find, and get matched with vetted advisors.