Business Value and Transition 2.0

The Right Overview Questions To Ask Consultants

by Ian R. Campbell | January 5, 2019 | Consultants

Right Questions To Ask Consultants Before Engaging Them

Question #1: Are you and your firm directly, indirectly or possibly conflicted in the context of the engagement we are discussing?

Note: Consultants working in multi-dimensional firms often are potentially conflicted. For example, a large accounting firm that is the auditor of a company is likely conflicted or potentially conflicted where a specialist consultant is unlikely to provide advice to the owners of that company that might disrupt the audit relationship.

Question #2: Whom do you consider to be your principal competitors?

Question #3: What differentiates you from your principal competitors?

Question #4: What do you offer to us that should result in us engaging you?

Question#5: Will you and your colleagues always subordinate your self-interest when completing the engagement to the interests of me and my co-stakeholders?

Question #6: Will you always ‘speak truth to power’ when advising me and my co-stakeholders, even if that means that as a result of your advice your engagement might be terminated?

Note: ‘Speaking truth to power’ is an increasingly popular way to describe ‘taking a stand’ in circumstances where the recipient of information or advice is in a position of equal or comparative power.

Question #7: What specific experience have you had in consulting with others in our industry?

Question #8: Are you able to provide three references and their contact information with whom I can speak?

Question #9: Do you have any hands-on business operating experience external to your consulting practice?

Note: Lack of relevant business operating experience is a profound shortcoming of most business valuation and transition consultants I have encountered over the past fifty years.

Question #10: If you do not have any such hands-on operating experience will you seek it out and sub-contract it if you believe it is necessary for you to do that?

Question#11: What knowledge do you have of current and prospective macro-, country- and region-specific economics as those things may influence our business going forward?

Question #12: What knowledge do you have of current and prospective government intervention as that may influence our business going forward?

Question #13: What knowledge do you have of current and prospective technological advances as those things may influence our business going forward?

Question #14: How do you determine your fees?

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Ian R. Campbell has provided business valuation and transition advice to business owners and advisers for 50 years. See Profile.

In his retirement from active practice he:

• Advises a limited number of business owners with respect to valuation and their business transitions.
• Works to provide business owners and their advisors with thought-proviking business value and transition commentary.

Disclaimer: Blog content ('Content') does not constitute individualized business valuation, transition, economic, technology or investment advice. The ideas, views and opinions expressed in the Content are solely those of the author. Provided 'as is', Content is general in nature and may not be relevant to individual business facts and circumstances, may change without prior notice, may be incomplete, inexact, or incorrect for jurisdiction-specific or other reasons. Content is used at the reader's own risk.

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