Is professional advice worth it when buying a business?

The M&A market is slowly finding its feet again and business buyers are showing more interest in new acquisitions. But while seasoned buyers might be more confident about going it alone, newcomers to the process and those considering new kinds of business deals are starting to look at how a professional adviser could help them.

Perhaps the biggest point in favour of getting an adviser is the fact that they should help to maximise the value of a transaction, ensuring you get a good deal for your money. Furthermore, they can offer sector-specific information, which should allow you to capitalise on any contacts you might have and guide you towards the businesses that will be most relevant to your requirements.

Once the search gets more specific, taking on an adviser should help in a number of key areas, not least of which is due diligence. Buying a business without paying the necessary attention to this is a dangerous step to take and if you can afford to hire a professional who you trust, the risks involved in buying the business can be vastly reduced.

Once you have someone on board, you are likely to find that their advice is valuable in ways you hadn't previously considered. Getting a second opinion on contracts or a potential acquisition's financial details, for example, will be areas in which an adviser can help.

Which kind of adviser you go with will depend on the type of company you buy but independent financial advisers are usually available for smaller acquisitions, while investment banks occasionally come down to advise on mid-market acquisitions.

Of course, some people will view advisers as an unnecessary expense, but for anyone who requires some extra guidance, a professional adviser can be invaluable during the acquisition process.

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