How to choose the right acquisition adviser?

The higher the acquisition price, the more important professional advice becomes. For small acquisitions, it might not be necessary to spend a lot on various experts like consultants, acquisition advisors, and intermediaries. The occupation of an acquisition advisor is not regulated, unlike notaries and lawyers. This can result in less reliable advisors being available on the market. Be cautious when entering into an acquisition guidance contract, as such agreements are often expensive and exclusive.

In Belgium, there are two professional associations for acquisition intermediaries: the Professional Association of Acquisition Intermediaries (BVOB) and UPIC. There is also the recognition of advisors for the KMO Portefeuille, a measure that offers financial support to entrepreneurs for services that improve the quality of their business.

If your acquisition advisor is recognized through the KMO Portefeuille, is affiliated with the mentioned professional associations, or appears on the list of affiliated acquisition advisors at Overnamemarkt.be, you can count on a reliable acquisition advisor.

What Does a Professional Acquisition Advisor Do?

An acquisition advisor helps with the preparation and execution of the business transfer. This includes determining the value of the business, preparing an information memorandum, placement on Overnamemarkt.be, negotiations with potential buyers, and the finalization of the transfer.

View the list of acquisition advisors by professional group and province here

Acquisition advisors possess diverse knowledge: they analyze annual accounts and business plans, understand legal and fiscal aspects, and are focused on closing deals, mostly on a commission basis. Lawyers, accountants, company auditors, bookkeepers, notaries, jurists, and tax experts can also support specific parts of the acquisition process, usually at an hourly rate.

Costs of Acquisition Mediation

Acquisition advisors often charge their fees based on hourly rates, commissions, or a combination. An exclusivity period of 6 months to a year is common, during which you can only sell your business through that advisor. Ensure you understand the terms of exclusivity periods well.

You always pay for costs such as preparing a sales dossier or information memorandum and the valuation, even if the transfer does not go through. Hourly rates for acquisition guidance vary from €80 to €150, with specialized profiles above €200 per hour. Experienced professionals work more efficiently, potentially making their advice cheaper than that of a less experienced advisor.

Commissions are paid after the transaction is completed. For business real estate, the commission is typically 1.5% to 3% of the sale price, while rates for business transfers range from 3% to 8% and decrease as the transaction gets larger. Often, a base fee (retainer fee) is requested when starting a mediation task, meant to cover the advisor's initial costs and to show the entrepreneur's commitment.

Some intermediaries use the "no cure, no pay" principle, where you only pay if an acquisition is found. In that case, the commission is higher. Note whether additional costs such as legal advice are included in the commission or billed separately. Get well-informed about the cost structure when entering a mediation task and always request a detailed quote.

Download the E-BOOK: 5 qualities a good M&A advisor should have by Rosalie van Rijk, member of Transeo and BOBB.

Find Your Ideal Acquisition Advisor

Acquisition advisors come in all shapes and sizes. Accounting firms often have a department for business acquisitions or corporate finance for larger deals. There are dozens of firms with acquisition intermediaries, often regionally oriented or specialized in a specific sector. Look at their offerings and references. Professional acquisition advisors often have a minimum sales value of €500,000 or more.

Research shows that the main criteria for choosing an acquisition advisor are a personal connection (25%), the advisor's experience (19%), specialization (15%), references (14%), and network (13%). The fee plays a lesser role (9%).

UNIZO, with support from the Flemish Agency for Entrepreneurship and Innovation (VLAIO), offers a guidance trajectory for tailored advice for sellers of a small business.