A study by the Chamber of Industry and Commerce (IHK) shows that between 2022 and 2026, around 200,000 small and medium-sized enterprises are planning for succession. Many of the owners are looking for a suitable advisor to guide them through the handover and succession process, as for most of them, selling a business is uncharted territory and raises many questions.
Tips for Choosing the Right Advisor
First and foremost, it’s important not to end up with the wrong advisor or make hasty decisions. “Calls from telemarketers with a background in psychology, making grand promises of success and offering paid fixed-term contracts, primarily target small businesses, ” industry insiders report.
Caution is also advised when it comes to offers of free business valuations, especially if these create a sense of urgency and raise unrealistic expectations. A reputable succession advisor builds on trust, communicates openly, and always gives the business owner ample time to reflect. Another hurdle is opaque consulting fees. Often, the fee consists of a fixed monthly flat rate—known as a retainer—as well as a percentage-based success fee paid upon completion of the transaction. Therefore, it is important to ask detailed questions about the scope of services.
Important Questions to Ask the Consultant
Does the advisor prepare a company profile?
Do they conduct a business valuation?
Do they guide the entire succession process?
Does the advisor assess the company’s readiness for transfer (due diligence, etc.)?
Finding the Right Consultant
With these principles in mind, interested parties can begin their search for competent succession planning advice. The internet offers a good way to get a sense of a consultant’s professionalism. The DUB Consultant Directory provides profiles of business consultants for various locations.
Personal recommendations are also valuable and provide honest feedback. Every business succession has its own challenges. Especially for smaller, owner-managed family businesses, a consultant with a great deal of tact is needed to handle the succession process optimally.
Checklist for Finding a Consultant
Finding the right consultant saves time, money, and stress in the long run. The following points are important:
Chemistry: Selling a business requires a great deal of transparency, both professionally and personally. A consultant is therefore always a trusted advisor. Feeling comfortable with them is essential.
Readiness for Sale: Companies should determine whether—and, if so, in what steps—a sale is possible. A consultant specializing in succession planning must thoroughly assess this.
Experience: How much expertise does the succession advisor have, and how many projects have they successfully completed? Are they familiar with my industry? Reputable advisors provide concrete answers and take the time to address your needs.
Find the Right Partner for Your Business Succession
Choosing the right advisor for the sale or succession of your family business is crucial to the success of the entire process. With the information and tips provided here, you’ll be well-equipped to make an informed decision.
