Can I/Should I hire an M&A advisor?

1 What does a sales consultant actually do?

A sales consultant (also known as an M&A advisor, transaction advisor, or business broker) provides professional guidance throughout the sales process. Their key responsibilities include:

• Business Valuation: They prepare a valuation estimate (for smaller transactions, typically based on industry multiples) as a basis for price negotiations

• Buyer Search: They identify and contact potential buyers; professional advisors often collaborate with partners such as DealCircle and use platforms like DUB to evaluate and pre-screen expressions of interest

• Process management: He coordinates all parties involved (lawyers, tax advisors, buyers) and ensures the timeline is adhered to

• Confidentiality management: He ensures that the sale proceeds discreetly and that no information leaks out uncontrolled

• Negotiations: He advises you on negotiation strategy and, if you wish, can take over negotiations on your behalf for specific aspects

2 Why It's Generally a Good Idea to Hire a Consultant

Involving a sales consultant is generally always beneficial when selling a business. The most important reasons:

• Higher likelihood of closing the deal: Involving an advisor significantly increases the likelihood that the transaction will actually be completed. This is a decisive advantage, especially for small businesses, where closing rates tend to be only 20–40% without professional guidance

• Higher sale price: A structured, competitive process involving multiple prospective buyers typically leads to a better outcome than bilateral negotiations with a single buyer

• Professional process management: The sales process takes 6–12 months and requires considerable attention in addition to day-to-day operations. An advisor takes on the majority of this work

• Expansion of the buyer pool: Through their partners and platforms, an advisor reaches significantly more potential buyers than you could on your own and handles the pre-qualification of interested parties so you don’t waste your time in discussions with unsuitable buyers

• Negotiation experience: An advisor is familiar with the typical pitfalls and negotiates professionally in your best interest

• Confidentiality: Without an advisor, you’ll be communicating using your name and email address from the very beginning—making it nearly impossible to protect your company’s identity before a confidentiality agreement is signed. An advisor acts as an intermediary, controls the flow of information, and only reveals your company’s identity after an NDA has been signed

3 How much does a sales consultant cost?

The compensation for sales consultants varies depending on the consultant, the size of the transaction, and the scope of the engagement. The three most common models are:

Retainer + Success Fee (most common option)

The most common model is a combination of a monthly base fee (retainer) and a success fee: a percentage of the purchase price that is payable only upon successful completion of the transaction. The retainer covers the advisor’s ongoing work, while the success fee provides an incentive to secure the best possible deal. The amount of the success fee depends on the transaction volume:

• Under 5 million EUR: typically 5–8% of the purchase price

• 5–20 million EUR: typically 3–5% of the purchase price

• Over 20 million EUR: 1.5–3% of the purchase price

Even though many sellers would prefer a pure success fee with no monthly costs or a pure hourly billing structure, such models are very uncommon in practice. The combination of a retainer and a success fee has become the standard because it best aligns the interests of both parties.

How much does a sales consultant cost for a transaction of this size? Expected purchase price: € Commission rate – Success fee – Your proceeds after commission – –

4 Finding the Right Consultant

When choosing a consultant, take your time. Not every consultant is a good fit for every company. Keep the following points in mind:

• References: Can they demonstrate a track record of successful, completed transactions, ideally at a scale similar to yours?

• Personal chemistry: You’ll be working closely together for 6–12 months. Trust and good communication are crucial.

• Contract terms: Review the term, exclusivity, and termination rights. Avoid overly long commitment periods without a performance guarantee.

• Industry experience: Specific industry experience is a plus, but not a must. The sales process itself is a craft. An experienced advisor can work across industries.

• Network and Buyer Access: Having your own buyer network is an advantage, but it’s no longer a decisive factor. Tools like DealCircle now support the systematic identification of buyers, so even advisors without a large personal network can ensure they reach a broad range of buyers.