When should I hire a financial expert? How much will an analysis cost? What will the work product look like?
These are common questions we get asked before being engaged as financial experts. Because of the wide variety of situations that necessitate the use of a financial expert, there is no one-size-fits-all answer for these important questions.
Timing
There are different strategies in play with many of the projects we are asked to assist with. Some may be legal strategies, some are geared at gaining negotiating power, and others simply may be a matter of getting educated about a particular issue.
In any of these situations, early involvement of an expert is often better than waiting until the last minute. The earlier an expert is on board, the more opportunity they will have to provide input based on their knowledge and expertise. In many cases, this specific knowledge and expertise can be very beneficial to the overall process and for arriving at a favorable result.
Costs
Financial experts are professionals; professionals sell their time and expertise. Therefore, their cost is a function of use, so the more you use the expert the higher the cost. Determining the right amount of involvement (use) or the right level of service needed from the expert is therefore critical to identifying a potential cost.
Financial experts understand the client doesn’t have an open checkbook to fund their engagement. So asking for a range of fees, or even a fixed fee agreement, is something experts have learned to expect for common services or projects. Agreeing to a fee up front is beneficial to both parties, and it sets the parameters for the work that will be performed on both sides of the table.
Scope of work
What is the right level of service or work product for my situation? This is a key question to answer in effectively and efficiently utilizing a financial expert. In some situations, the answer may be obvious; in others, it may evolve as the situation progresses. This is again where communication with an expert early on is beneficial.
There are some situations where a limited amount of work may be sufficient to achieve the results needed. Communicating this to the expert early on allows them to know what is needed and adjust accordingly. If that work product doesn’t remedy the situation, then the expert may be able to layer on additional analysis to arrive at a more complete or defendable answer and thus bolster the chance of arriving at a favorable result.
If you need a financial expert, would like to talk about a particular situation or have further questions or comments, please contact Amber Hoover at (317) 613-7844 or [email protected].