Don’t Hire A Business Advisor / Brokers For Your M&A And Capital Loan Needs In Canada

Updated: May 30, 2011

Well, we think we have hopefully made our point that there will be many times when there will be significant value in not wasting internal resources and people time when you are looking for business financing. Who would ever want to be accused of making the mistake of trying to manage and execute on all your business financing needs without any professional help. No one we know, that's for sure.

Over time, and trust us we don't know why, we have come to dislike the word ' broker '. In reality we confess at the same time that we see everyone uses a mortgage, insurance or other type of broker to get a qualified, credible ' best deal '. So the middleman approach clearly has value to the consumer. Does it have value to a business? We think so, and here's why.

Whether your business is in hyper growth mode, or at the opposite end of the spectrum, in financial distress surely you welcome the concept of an expert. You could be looking to complete an m&a transaction, or looking for loan and working capital facilities. Naturally there are many routine aspects of a business that do not require expert help, but when it comes to key issues around your businesses ultimate success are you 100% confident, on your own, all the time , that you have data , information, and possibilities covered. We doubt it, and we think you do also.

In effect you're looking for a ' business doctor' if we can call it that. And that's probably not a bad analogy given the importance you might place on going to a good doctor for serious reasons.

There are always questions you have when you are considering Canadian business financing, and a good business advisor will answer those questions based on experience, at the same time pointing out alternative you may never have thought of.

But, and its a bit but , never assume that everyone out there who tells you they can assist in business financing, loan and working capital needs, or m&a help .. Knows of what they speak. The choice of a solid advisor can make or break your success in Canadian business financing for new or refinancing capital.

So what should you look for in a good advisor? We're pretty sure it's intuitive, but we speak to so many clients who feel either burned or let down by past experience. So focus on some key areas such as the advisor number of years in practicing what they do. Do they have solid credible contacts?

References are of course also great, and with the internet you can Google anyone in business with a reputation and determine a lot about the quality and reputation and credibility of that firm or person. Remember, you're entrusting them with your financing in a very confidential way, and that's important.

Don't settle for generalists also, focus in on someone who can deliver on the specific financing you need, in areas such as m&a, working capital, asset based financing, franchising, or more esoteric new products such as confidential invoice discounting, purchase order financing, tax credit financing, etc.

You ultimately want to feel comfortable on sharing information with this person or firm, reviewing pitfalls, and most importantly, representing your firm in its business financing needs.

Featured Research
  • Contact Center Software on a Budget

    Although contact center software is necessary for a modern contact center, it can be outrageously expensive. Many companies find that their budget bloats during the implementation process. more

  • How UC Can Help Your Business Survive the Holidays

    The holiday season is filled with frenzy and excitement for businesses and consumers alike. Consumers prepare gift lists, compare brands and prices, and begin shopping with a vigor that is not present most other times of the year. For many businesses, the holiday season accounts for a large profit bump at the end of each year, and companies strive to exceed their goals and keep customers happy during this rush late in the year. more

  • [Infographic] Switching Phone Systems

    There are a lot of possible reasons you might want to switch to a new phone system. The old one might cost too much or be too troublesome to operate and maintain. It might not be flexible enough. It might not be reliable enough. Or it just might not have the kinds of features and capabilities that you need in today’s competitive business climate. more

  • Business Intelligence Software Cost Guide

    Your choice in a BI (Business Intelligence) provider can lead you to make better, data-driven decisions for your business, resulting in significant ROI. Or it can cost hundreds of thousands of dollars with mixed results. more

  • The New 2016 ERP Comparison Guide

    Selecting an ERP solution is no easy undertaking. You have to select and configure a system that fits your exact business needs. The right system can make operations more streamlined, efficient, and agile. But choosing the right vendor can be difficult. more