Los Angeles

Borrowers are beginning to show a higher level of scrutiny in choosing a capital advisor. The business was once more about industry relationships, but today, borrowers are looking at key factors to make sure that the deal is meeting their needs and accomplishing their business plan.

"It's extremely important," Malcolm Davies, principal and managing director of The Davies Group at George Smith Partners, tells GlobeSt.com. "The business is much more sophisticated than even a decade ago. My favorite expression is 'It's not just who you know, it's how you know how to get them to do your deal.' Obvious factors include the advisor's connections, their comparable experience and their competency level."

The right advisor will connect well with the client and have time for them, but also understand the investment vision and can be persuasive in the capital markets to accomplish the borrower's goals. "Consider the structure of the advisor's firm," says Davies. "Are the individuals working your deal recognized for their work and compensated fairly? Will the firm's profits go to the people on the front lines? To shareholders? To pay off company loans? The answers to these questions may influence how motivated the advisor is to hustle for you. "