Whether you need help with mergers or acquisitions or want to sell, hiring the right corporate advisor could make all the difference in your success. Emphasis on the right corporate advisor, because they’re not all created equally. When you’re trusting in the advice of someone helping you with something as valuable as your business, you want to be assured they’re going to do right by you. But how do you find the right corporate advisor? Well, we have a few questions that you should always ask before hiring a corporate advisor.
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What specific areas of expertise do you have?
A key question you want to know the answer to when you hire a corporate advisor is their experience. While corporate advisors train and study to operate in any industry, it does help to have an advisor who specialises in the same industry as your business. Ask your prospective advisors about their experience with similar businesses to yours.
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How have you helped other organisations in the past?
Following on the point of experience, it is also helpful to know if a corporate advisor has a track record of success with businesses like yours. It’s easy to say that they’ve had experience in the industry, but was the experience successful? If you invest in an advisor, you want someone who has already proven their ability to drive success.
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What is your approach to solving problems?
Give your potential client a scenario or problem and ask them how they would solve it. While this puts them on the spot, it gives you an idea of how they would approach a problem and provide a solution to it. This could also help you tell whether their problem-solving approach matches your business needs.
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Can you provide references?
Getting a reference from someone with firsthand experience with the advisor you’re looking to hire is always helpful. Ask the advisor if they have anyone whom you can call to get a reference. Furthermore, take a look at their online reviews. If there are any red flags, people will tell you about them fast enough. Likewise, if the advisor hesitates to give you references, they may be worried about the reviews they’ll get, which is a red flag.
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What’s your preferred method of communication?
If you’re paying a corporate advisor to give you advice on how to run your business, manage big transactions, or break into a new market, it’s reasonable to expect them to have decent communication skills and habits. Granted, they aren’t at your beck and call; you would need them to be fairly prompt in responding to you and easy to get a hold of. Ask the advisor you’re meeting with how they manage their communications. This will give you an idea of whether you can work with them or not.
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How do you ensure confidentiality?
Confidentiality is an important component of a business and advisor relationship. Corporate advisors would get a first-hand look at how businesses operate and, in some cases, their financials. For example, a business is trying to enter a new industry by purchasing a company. Unfortunately, information regarding this gets out, and a competitor offers the company more, putting the whole deal in jeopardy.
This is why confidential information needs to be kept confidential. With that in mind, ask the advisor how they prioritise confidentiality and how they approach data leaks within their company.
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What are your fees, and how are they structured?
This is an important question to ask,, and you must ensure you fully understand the answer. Ask the potential advisor how much their services cost. Their answer may vary depending on the services you need them to provide. For instance, if you’re selling your business and hire a corporate advisor to help, they may work on a commission basis, whereby they take 5 to 10% commission based on the total sales price of the business.
You might also hire them to assist you in navigating financial difficulties. In this case, you may have to sign a retainer agreement, which would involve you paying them monthly until you no longer need their services. Our suggestion would be to ask them about all of their payment structures, so you know for the future and ask them to explain any fine print in detail to you, too.
Where can you find the right corporate advisor?
There are many corporate advisors in Australia, and finding the right one is pivotal for your company. If you're looking for direction, here’s a helpful page from Lloyd's corporate advisors. Lloyds has been a leader in the advisory industry for years, offering premium services to businesses of different sizes. On this page, you’ll get more insight into what a corporate advisor can help you with and will put you in contact with experts in the field.
Final thoughts
Don’t dive into hiring the first corporate advisor you meet. Take the time to ask them the questions above and ensure that you fully understand the services they offer before signing a contract. Remember, these individuals would influence your business. So, as far as it depends on you, you need to make sure that you can trust the advice of the advisor you hire. Take your time, ask the right questions, and you might just find the right advisor for your business.
