You are considering to sell your business, but what costs are actually involved? A major cost is the advisor, but there are other costs to consider as well.

The cost of hiring a corporate finance advisor

When choosing an advisor to assist you in selling your business, cost is obviously important. That said, the (personal) connection between you, your business, your industry and your advisor is more important. That match is important for going through a successful process together and realizing the best price. On balance, a lower sales price at some lower cost will soon be less attractive than a higher sales price at some higher cost.

Normally, the advisory cost of selling a business consists of 2 components:

• Retainer: a fee based on the effort of the sales consultant and his team. This can be on an hourly basis (on subsequent calculation), a fixed amount per month or a fixed amount per stage of the journey.
• Success-fee: a percentage of the sales price paid only when the sales transaction is successfully completed.

Other costs when selling a business

In addition to the cost of the advisor, it is good to consider:

• Opportunity-costs: as your focus as an entrepreneur shifts to selling your business, it can come at the expense of focus on such things as revenue growth.
• Other costs: in addition to the cost of the sales advisor, you will have to deal with costs of other advisors, such as your lawyer, tax specialist, accountant and notary.