LENDERS EXPECT BUSINESS BUYERS TO HAVE AN ADVISORY TEAM.
This, from an SBA preferred lender, alerts you to the importance of having identified your advisory team early in due diligence. And then, within your application for funding, show the composition of your post-completion advisory board.
“Self-funded searchers using the SBA loan program need to take a page from the tried-and-true traditional search fund model, forming boards and leaning on advisors. One might assert that for the SBA program, where searchers and CEOs will take on larger levels of debt, the need for outside advisors might be even more important. Our bank lending team has been thrilled to see the level of diligence increase, with more emphasis on creating a professional advisory team for the diligence phase as well as for operational advice.”
Actually, this is common sense, isn't it?
But, I continually see searchers deferring the assembly of their team. It may be why so many searchers defer their success, too. Isn't it a good idea for searchers to understand their monthly lost opportunity income?
I can help you evaluate specialists, especially accounting and legal, if you're not sure you have the right kind of advisory team, which includes you being able to access experts when you need it. (I saw a deal almost fail thanks to an unavailable lawyer. It would have failed, too, had there been buyer competition.)