--- title: The role of an advisor when borrowing description: Buying or selling a business is one of the most important decisions. Learn about the role of an advisor when borrowing. image: https://insights.smecapital.com/hubfs/smecapital-blog-advisor-sm.jpg --- [![](https://insights.smecapital.com/hubfs/SME%20Capital%20Images/smecapital-logo.svg)](https://www.smecapital.com) [Business Funding](https://www.smecapital.com/business-funding) [Portfolio](https://www.smecapital.com/portfolio) [Case Studies](https://www.smecapital.com/case-studies) [News & Insights](https://insights.smecapital.com/) [About us](https://www.smecapital.com/about-us) [Contact](https://www.smecapital.com/contact-us) Legacy [For Investors](https://www.smecapital.com/legacy-invest) ** [Log in](https://app.smecapital.com/) Looking for funding × [Business Funding](https://www.smecapital.com/business-funding) [Portfolio](https://www.smecapital.com/portfolio) [Case Studies](https://www.smecapital.com/case-studies) [News & Insights](https://insights.smecapital.com/) [About us](https://www.smecapital.com/about-us) --- Legacy [For Investors](https://www.smecapital.com/legacy-invest) --- [Contact](https://insights.smecapital.com/the-role-of-an-advisor-when-borrowing#) [Log in ](https://app.smecapital.com/) Looking for funding **![back-chev](https://insights.smecapital.com/hubfs/back-chev.svg) **[News & Insights](https://insights.smecapital.com/) # The role of an advisor when borrowing Buying or selling a business is one of the most important decisions. Learn about the role of an advisor when borrowing. "I know my business". "I know my bank". "I’ve been with my lawyer and accountant for 20 years". "Why do I need to waste money on advisor fees?" Many have regretted those comments! Buying or selling a business, or making an acquisition are some of the most important business decisions. And, getting it wrong can be disastrous. ![smecapital-blog-advisor](https://insights.smecapital.com/hubfs/smecapital-blog-advisor.jpg "smecapital-blog-advisor") ## **Why do you need an advisor?** ### **1. Expertise** Helping people and businesses borrow is their day job. An existing accountant/lawyer may be excellent for day to day transactions but despite what they might say how many deals like yours have they done recently: their expertise lies elsewhere. So, before committing to your existing support: ask around; take up references. If you want to still involve your existing advisors use them as a sounding board but appoint specialist advisors for this transaction. ## **2. Knowing who to approach for funding** A Corporate Finance or Debt Advisory advisor will have relationships with appropriate funders. Just remember, your existing bank is not the only funder (and these days High Street banks have little appetite for debt that isn’t secured or Government supported). So, in the long term, you are better off looking into more options anyways, that an advisor can support with. ## **3. Negotiating** Even with a ‘friendly’ deal, e.g. [a MBO](https://insights.smecapital.com/what-is-a-management-buyout-mbo), an external advisor can provide much needed ‘distance’ and objectivity between the vendor and his MBO team. In most of these cases, emotions can rise and personal relationships can be damaged – particularly difficult if the transaction doesn’t happen and you have to carry on working with each other.  ## **4. Deal management** The transaction will be time consuming and, especially towards the end, almost all consuming. So, let someone else, who has done it many times before, manage the deal – you still have a business to run!  ## **Where do you find an advisor?** - A friend down the pub or at the golf club might not be the best place to start! - Searching online will provide a myriad of suitable names locally, but regional trade magazines help narrow the search down (e.g. Insider magazine produces a Corporate Finance Guide online). - All national and regional accountants and lawyers have excellent websites. Look for ‘tombstones’ or summary details of similar deals they have recently completed. - Speak to your existing professional contacts. - Speak to others who have completed a similar deal.   ![stuart-watson-sm](https://insights.smecapital.com/hs-fs/hubfs/SME%20Capital%20Images/New%20Images/About/stuart-watson-sm.jpg?width=110&name=stuart-watson-sm.jpg) Author: [Stuart Watson](https://uk.linkedin.com/in/stuart-watson-97884337) February 2022 **Share** Copy article link **Latest News & Insights** **Keep Updated** Everything you need to know about all things SME Capital straight to your inbox [**Sign up now** ](https://www.smecapital.com/sign-up)[![more](https://insights.smecapital.com/hubfs/SME%20Capital%20Images/sprite%20icons/more.svg)](https://www.smecapital.com/sign-up) ![smecapital-blog-mbo-sm](https://insights.smecapital.com/hubfs/smecapital-blog-mbo-sm.jpg "smecapital-blog-mbo-sm") February 2022 [**What is a Management Buyout (MBO)?**](https://insights.smecapital.com/what-is-a-management-buyout-mbo) Management Buyout (MBO) is a process in which a company’s key management team acquires all or part of the company they manage. ![smecapital-blog-acquisition-pitfalls-sm](https://insights.smecapital.com/hubfs/smecapital-blog-acquisition-pitfalls-sm.jpg "smecapital-blog-acquisition-pitfalls-sm") January 2022 [**Acquisition Finance – 15 Pitfalls to Avoid**](https://insights.smecapital.com/acquisition-finance-15-pitfalls-to-avoid) There are pitfalls for potential borrowers to avoid when it comes to putting in place the debt piece of the funding structure. Looking for funding? Start today. Whether you are an eligible business or an intermediary advisor our regional directors are on hand to discuss your funding requirements and feasibility. [![](https://insights.smecapital.com/hubfs/2A5pddew.png) Get Started ](https://www.smecapital.com/looking-for-funding) ![](https://insights.smecapital.com/hubfs/SME%20Capital%20Images/smecapital-logo-inv.svg) [Contact us](https://www.smecapital.com/contact-us) [Looking for funding](https://www.smecapital.com/looking-for-funding) [FAQs](https://www.smecapital.com/faqs) [Log In](https://my.smecapital.com) [Terms of use](https://www.smecapital.com/terms-of-use) [Cookie policy](https://www.smecapital.com/cookie-policy) [Privacy policy](https://www.smecapital.com/privacy-policy) [Security](https://www.smecapital.com/security) [Risk Warnings](https://www.smecapital.com/risk-warnings) Enquiries [0203 873 6983](tel:02038736983) [info@smecapital.com](mailto:info@smecapital.com) [![](https://insights.smecapital.com/hubfs/SME%20Capital%20Images/New%20Images/Odds/linkedin.svg)](https://www.linkedin.com/company/sme-capital-uk/) © 2022 SME Services & Holdings Limited. All rights reserved. SME Capital* is a Registered Trademark with the UK's Intellectual Property Office (UK00003110309). Any use or reproduction of our name and logo is subject to authorisation from the company