“Price is what you pay. Value is what you get.”

Naked Truth

“Price is what you pay. Value is what you get.” This quote from Warren Buffet was never more pertinent than when associated with the word “lite”.

 

 

A recent emergence in the business sale sector is the introduction of a “lite” service. By this I mean, the business sale broker significantly reduces their upfront retainer fees, but their client is required to do much of the work. Its “smoke ‘n’ mirrors” and misdirection Darren Brown would be proud of.

Think about it for a moment, would you really get a £40k service for just £10k-£15k? The reality is that you will receive a vastly reduced service for a vastly reduced fee. The outcome of this is the likelihood of selling your business becomes lower.

This is because most business owners have never sold a business before. In contrast, most Acquirers have bought many times before.   They are the experienced party with expert negotiation skills and they know all the techniques to justify low offers. Paying less for reduced advisory input could cost you hundreds of thousands of pounds, if not millions! A “lite” service is the worst of both worlds – “lite” on content, “lite” on support, “lite” on results!

In specialist areas of expertise I will always pay others their standard fee, whether it’s a Doctor, Accountant, or Lawyer. I would never instruct them and then expect to do half the work. It would be madness and so too it is with the highly complex area of selling businesses. Often a multi-million pound transaction, where the stakes are often high. The cost of not achieving your goal always far outweighs the extremely modest saving in fees.

 

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