Business Acquisition Financing – Negative Role of Advisors
By Angela Sanders Tuesday, October 01, 2013, 07:57 AM EDT
Business acquisition financing is something important and you need to carry out a whole lot of activities and formalities for getting the same. The whole process of obtaining the already running business is a total cumbersome job which involves a thorough understanding of the risk and the return involved in the same so as to be able to make the lenders understand from you. Although you take the lot of efforts but the results which you achieve are also not worth everything. Due to which at one point you might feel frustrated. The whole process is tiring, frustrating and puts everything under question.
Why is this process frustrating?
The process becomes irritating for you due to the advisors who are involved in it. You might think it as an absurd thing as you pay to those advisors, however believe it or not it is the truth, and your advisors are the ones who are the reason behind it. You can however understand it in this way, when having a deal there are always two parties who are involved but in order to get the expert advice both of these parties rely upon their financial advisor. The financial advisors are supposed to provide the legal, financial and tax related information to the buyer and sellers.
But one thing that most of the people are unaware of is that most of these issues are not dealt in a proper manner. Business acquisition is an issue which should be dealt in the different manner, far more differently than a purchase and sale agreement. Due to which sometimes your financial advisors also fail in dealing with it, which creates an unworkable issues for the potential lenders.
Since these buyers and sellers depend upon the advisors, the chances of getting this deal see success becomes thin. It becomes difficult for the both sides to agree upon the issues without causing delay in action. The advisors are generally kept on the basis of the commission. They get commission to protect the interests of the both the groups. But in this process of protection of the interest it could be difficult to get both sides settle upon a one single decision. As both the groups have their own point of view which could be contradicting.
Also if the deal or sale agreement is finalized there might be the various terms and conditions which your source of business acquisition financing might not agree upon. There again will come the point where you might feel irritated as most of the time and money was already wasted in decided the terms and condition which suits the both of the parties and now there comes another hurdle. Then if the agreement again needs to be reworked then it means that the planning has to be done from starting now. Which clearly means that again all the process will be repeated. There are again the chances that your source of business acquisition financing might decline your offer.
It will obviously be a lot more depressing for you. So it is advisable to consider certain points if you are planning to buy yourself the small business organization.
- Take the advice of the advisors but be the decision maker yourself. Do not leave all the power of making the decision on your advisors.
- Go for the brokers, advisors, lawyers who act as deal makers and not the deal breakers.
- Make sure to qualify for all your business requirements in advance. Know some points in advance and try to keep things handy.
- It is advisable to consult your financial consultant before taking any decision.
- Set the realistic time frame for making the repayment.
Business acquisition is never an easy task looking at the various complications involved in them. So, if you are set out for the moves prepare well so as to keep your frustration at bay. You can click here for more updates.