Questions to Ask Before You Hire an M&A Advisor

The engagement letter you sign with an M&A advisor shapes the outcome of the most important transaction of your business life. Before you sign, ask these questions, and listen for specific, verifiable answers rather than generalities.

The ten questions

1. How many companies like mine have you sold, and can I speak to one of those founders?
2. Who specifically will run my process day to day, and will I work with you or a junior team?
3. What is your close rate on the engagements you take to market?
4. Who are the most likely buyers for my business, and which have you spoken with recently?
5. How are you paid, and how much of your fee is contingent on a successful close?
6. Is there a retainer, and is it refundable or credited against the success fee?
7. What is the tail period after our engagement ends, and how does it work?
8. How will you protect my confidentiality with employees, partners, and competitors?
9. What do you think my business is worth today, and what would raise that number?
10. Am I ready to go to market, and if not, what should I fix first?

What a strong answer sounds like

• On fees: mostly success-based, with a clearly defined schedule and modest or no upfront cost.
• On staffing: the senior person who pitched you stays on the deal from start to finish.
• On buyers: named relationships and recent conversations, not a database export.
• On readiness: a candid assessment, including reasons to wait if waiting would raise your outcome.

733Park answers all ten of these on the first call, before any engagement letter. If an advisor cannot, that is your answer.

Frequently asked questions

Should an M&A advisor charge an upfront fee?

Some charge a modest retainer, often credited against the success fee. Be cautious of large, non-refundable retainers that pay the advisor whether or not you close.

What is a tail in an M&A engagement?

A tail is a period after the engagement ends during which the advisor is still owed a fee if you sell to a buyer they introduced. Understand its length and scope before signing.

How do I check an M&A advisor's track record?

Ask for closed transactions in your sector, a reference from a founder who sold, and the firm's close rate on deals it takes to market.