The early stages of selling a business are an exciting and busy time. During this time, among many other important decisions, a business owner must decide whether or not to engage an investment banker. If a business owner decides to engage an investment banker, the investment banker will ask the business owner to enter into an engagement letter.

Many business owners—eager to get started with the sale process—sign investment banker engagement letters without first having them reviewed by legal counsel. Others have these specialized agreements reviewed by lawyers who do not have the appropriate expertise and experience to perform this critical task. Either of these approaches is a mistake. If a business owner has not yet engaged an experienced mergers and acquisitions attorney when it comes time to negotiate the investment banker engagement letter, this is the time to do so. Failing to do so could lead to significant needless expense and consternation.