I am interviewing investment bankers and brokers to help me sell, but I find myself highly suspicious of their valuation promises. How do I apply the trusted advisor framework to evaluate which intermediary actually has my best interests at heart versus just wanting a listing?

Question

Tyler Smith · Accepted Answer

Choosing an investment banker or broker is one of the most critical decisions in your exit journey, but many owners are swayed by unrealistic valuation estimates. To cut through the sales pitches, you must apply the trust equation, which measures credibility, reliability, intimacy, and self orientation. A broker with high self orientation is focused on securing their listing fee or commissions, often leading them to inflate your business valuation initially, only to force price concessions later during due diligence. To test their trustworthiness, prioritize personal connection and initiate deep conversations. Ask hard questions about their specific transaction experience in your niche and how they manage the learning process for potential buyers. Observe if they are other focused, meaning they listen to your personal goals for the legacy of the company, or if they are self absorbed, pushing a one size fits all sales process. A trustworthy advisor will be honest about your company operational flaws and key person risks rather than telling you only what you want to hear. They will also be willing to take a calculated risk with you, aligning their compensation closely with your actual cash proceeds at close rather than upfront fees.