How to Hire a Buyout Consultant

Launching a successful buyout or takeover requires careful planning and precise execution. Unless you are a takeover maven, you will need to hire at least one buyout consultant, if not more than one. You will want to hire an experienced takeover attorney or corporate takeover specialist. Before you hire a consultant, do careful research about each candidate, and clearly define your buyout goals.

Instructions

Define Your Buyout Needs

1. Decide what type of role you would like to have in the buyout process. Knowing whether you want to handle the buyout yourself with advice from a consultant, or want to hand over the project and simply supervise will help you decide what type of consultant you need.

2. Review the industry business you wish to acquire is in before you make a bid. You should hire a consultant who has experience in that industry, since he is more likely to be familiar with the business culture and major players in that field of business.

3. Analyze your buyout timeframe. Buyout research and planning can take a lot of time, especially if you need to raise the cash for the buyout. Knowing how soon you will be able to make a tender offer to the company that you want to buy out will help you find a suitable consultant.

Research Expert Consultants

1. Speak with a consultancy broker. These business matchmaking services have access to lists of consultants that you may not be able to find elsewhere.

2. Consult the bar association website for the state you live in to find a mergers and acquisitions specialist attorney. Bar associations typically allow you to search by area of specialization. Lawyers designated as specialists have completed advanced training and have been accredited as specialists by the state bar.

3. Check for potential discipline problems. Bar association websites also allow you to review any disciplinary actions taken against any member attorney.

Interview Each Candidate

1. Ask the consultant about the types of mergers and acquisitions in which she specializes. Try to hire a consultant who specializes in buyouts and takeovers.

2. Request a copy of references from previous clients. Specifically ask for a few clients with unsuccessful buyouts whom the consultant had advised. Talking to past clients who were unsuccessful in their buyouts will help you ferret out any potential weaknesses in the consultant.

Tips & Warnings

• Always hire a consultant using a detailed and specific employment contract to avoid future problems if the relationship turns sour or if the buyout is unsuccessful.