August 2025 Newsletter
Fifteen Critical Questions to Ask an M&A Advisor (and Yourself) Before Selling Your Company
Selling your company is typically a once in a life-time event for most CEOs and business owners and you want to ensure you have the expertise and experience to navigate such a large and important undertaking.
Too many business owners kick the can down the road on the future of their business and the realities of selling their company – as if you are miraculously going to get younger, much healthier, fall in love with your business all over again, rise above the tired days and evenings to become super-energized all over again.
Every business owner should be thinking about – What is the smartest and most opportune way to optimize the sale of my company? Asking a Merger & Acquisitions (M&A) advisory firm specific questions (and asking a few questions of yourself) will be extremely valuable before taking the leap to sell your company.
The key is to sell your company:
Too many business owners kick the can down the road on the future of their business and the realities of selling their company – as if you are miraculously going to get younger, much healthier, fall in love with your business all over again, rise above the tired days and evenings to become super-energized all over again.
Every business owner should be thinking about – What is the smartest and most opportune way to optimize the sale of my company? Asking a Merger & Acquisitions (M&A) advisory firm specific questions (and asking a few questions of yourself) will be extremely valuable before taking the leap to sell your company.
The key is to sell your company:
- While you are still healthy,
- While your business is healthy, and
- While the economy is still healthy.
If any of the three turn negative, you will lose a lot of value in your business and you may not be able to sell the business at all in some cases.
Ask yourself:
Ask yourself:
- First - Why do I want to sell my company and why now?
- Second - How do I realistically sell my company to get a transaction done, and meet my expectations for a strong price and terms?
- Third - How much is my company worth, and when do I want to start the sale process?
These questions are the basics of formulating an Exit Strategy as an important first step. I can’t stress enough the importance of asking yourself the above questions, writing down your answers (as many thoughts will start to swirl in your head and fog your thoughts when clarity is key), and then contacting an M&A Advisor who has decades of experience and expertise, and can give you the proper guidance and reassurance you need to move forward.
Once you have the above answers fairly clear in your mind and written down, contact an M&A advisory firm to gain some additional information. Most importantly, contact an M&A firm where you will deal with a highly experienced principal in the firm – too many M&A firms will start you out with an experienced person, just to have an Associate level twenty-three year old do the great majority of the work and be your main contact for the most part, but this is far from optimal and very risky.
CEO Advisor, Inc. has only highly experienced team members of 20 – 45 years of experience each. Most importantly, as the President and owner of our M&A firm, I manage and lead every sale and work directly with the CEO or business owner every step of the way. We only accept a limited number of engagements per year so our level of service is top notch. We also have an 18-year employee with thirty-five years of experience who works hand-in-hand with me and researches all of the needed target buyers and their contact information (both strategic buyers and private equity firms), and other highly seasoned team members to assist me, as needed, depending on the engagement.
And we take the time to explain every aspect of the sale process every step of the way to our valued clients. We understand that this very well may be the first and only time you will sell a company, and your company is typically your most valued asset. Gaining a trusted, seasoned M&A advisor is a first step and an extremely valuable step in working through a sale process.
Here are critical questions that you should ask an M&A advisory firm to get the process started. Please make sure to get clear answers to your questions, write down the answers and be very leery when you start to hear vague answers or if questions are deflected.
Below are my suggestions on questions to ask M&A firms:
Once you have the above answers fairly clear in your mind and written down, contact an M&A advisory firm to gain some additional information. Most importantly, contact an M&A firm where you will deal with a highly experienced principal in the firm – too many M&A firms will start you out with an experienced person, just to have an Associate level twenty-three year old do the great majority of the work and be your main contact for the most part, but this is far from optimal and very risky.
CEO Advisor, Inc. has only highly experienced team members of 20 – 45 years of experience each. Most importantly, as the President and owner of our M&A firm, I manage and lead every sale and work directly with the CEO or business owner every step of the way. We only accept a limited number of engagements per year so our level of service is top notch. We also have an 18-year employee with thirty-five years of experience who works hand-in-hand with me and researches all of the needed target buyers and their contact information (both strategic buyers and private equity firms), and other highly seasoned team members to assist me, as needed, depending on the engagement.
And we take the time to explain every aspect of the sale process every step of the way to our valued clients. We understand that this very well may be the first and only time you will sell a company, and your company is typically your most valued asset. Gaining a trusted, seasoned M&A advisor is a first step and an extremely valuable step in working through a sale process.
Here are critical questions that you should ask an M&A advisory firm to get the process started. Please make sure to get clear answers to your questions, write down the answers and be very leery when you start to hear vague answers or if questions are deflected.
Below are my suggestions on questions to ask M&A firms:
- Are you the owner of the firm?
- What is your specific role at the firm?
- How long has your M&A firm been in business?
- How long is the entire process to sell a company (any answer less than 6 months is not an honest answer)?
- If I chose your firm to sell our company, who exactly will be working with me on a regular basis, what is their title and how many years of experience do they have in total and at your firm?
- How many people will I be working with from your firm, and approximately what percent of the time will I work with each?
- Will you share the target buyer’s list with me, and more importantly will you share the results/status of the target buyer’s on a regular or real-time basis?
- How will you provide status reports to me and how often, and who will provide the information and answer questions on this status report, as needed?
- Who specifically will help me and our company do the preparation work to get ready for the sale? And will we have regular status meetings?
- Who will prepare a Data Room for us, and what information is needed in the Data Room?
- Who specifically will be doing the outreach to targeted buyers - will it be you or an Associate level person?
- Who will help in negotiating offers with buyers?
- Who specifically will help me through the tedious Due Diligence process?
- Who specifically will help me on the many business aspects of the legal agreements, even though I will have a corporate / transaction attorney handle the legal documents?
- How much do you charge for your services, and can you provide a Proposal and your engagement agreement to me?
- Upfront costs, if any?
- Monthly retainer?
- Success fee upon a closed transaction?
The answers should not be confusing and you should not feel like scratching your head at the end of that discussion. Write down your answers to these questions and re-ask the question for clarity, if needed.
If you don’t feel that you are going to be working 80%+ of the time with the owner of the firm or a highly experienced person from their management team a great majority of the time, or you don’t have confidence in their answers as transparent and completely truthful, move on as this is too important to work with someone that you can’t get a straight answer from.
CEO Advisor, Inc. runs a full-service, completely transparent sale process with highly experienced team members and me, the owner and President, managing and leading every engagement. I will work with you on a consistent basis from the start of the preparation to the closing of the transaction. We have had a great reputation for 21 years, and we get transactions done. Our goal is to optimize your experience and your transaction.
For a no cost initial consultation, contact Mark Hartsell, MBA, President of CEO Advisor, Inc. at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
If you don’t feel that you are going to be working 80%+ of the time with the owner of the firm or a highly experienced person from their management team a great majority of the time, or you don’t have confidence in their answers as transparent and completely truthful, move on as this is too important to work with someone that you can’t get a straight answer from.
CEO Advisor, Inc. runs a full-service, completely transparent sale process with highly experienced team members and me, the owner and President, managing and leading every engagement. I will work with you on a consistent basis from the start of the preparation to the closing of the transaction. We have had a great reputation for 21 years, and we get transactions done. Our goal is to optimize your experience and your transaction.
For a no cost initial consultation, contact Mark Hartsell, MBA, President of CEO Advisor, Inc. at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
Do You Have an Exit Strategy for Your Family Owned Business?
For most family and closely-held businesses, planning for succession and an exit strategy is the toughest and most critical challenge they face. 88% of current family business owners believe the same family or families will control their business in five years, but succession statistics tell a different story.
According to The Family Firm Institute:
According to The Family Firm Institute:
- 3% of businesses operate into the fourth generation and beyond.
- There is a disconnect between the optimistic belief of today's family business owners and the reality of the massive failure of family companies to survive through the generations.
- Research indicates that failures can essentially be traced to one factor: lack of family business succession or exit planning.
Family Business StatisticsThe statistics regarding family businesses does not provide optimism regarding their long-term sustainability: It's estimated that 40% of family business owners currently expect to retire, 70% of family businesses would like to pass their business on to the next generation, of which only 30% actually will be successful, and nearly 43% of business owners have no succession plan in place. Keep in mind, selling the business might be the best option for you AND your family.
When does selling your business make more sense?Like so many things in life, timing is critical. To secure a buyer and gain the best price and terms, you should preferably be healthy and the business should be on an upswing with improving financial statements, as well as, in a strong economy. Today's interest rates are only a temporary minor issue as financial markets and valuations remain relatively strong for now.
CEO Advisor, Inc. has decades of experience and expertise in hands-on advising of small and mid-size businesses, including building value, growth capital and buying/selling companies. Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
When does selling your business make more sense?Like so many things in life, timing is critical. To secure a buyer and gain the best price and terms, you should preferably be healthy and the business should be on an upswing with improving financial statements, as well as, in a strong economy. Today's interest rates are only a temporary minor issue as financial markets and valuations remain relatively strong for now.
CEO Advisor, Inc. has decades of experience and expertise in hands-on advising of small and mid-size businesses, including building value, growth capital and buying/selling companies. Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
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