Consulting firm versus brokerage
A brokerage is compensated when a transaction closes. A consulting firm is compensated for the work. Both can be excellent, but only one is structurally free to conclude that the right move is no move.
If you want a transaction executed, a broker is the right hire. If you want to know whether the transaction is a good idea, the incentives point the other way.
What an engagement actually covers
Typical scopes include acquisition diligence, feasibility analysis for a development or conversion, portfolio review, disposition timing, and second opinions on deals already in motion. The deliverable is usually a written analysis with a recommendation and the reasoning behind it.
The useful engagements are narrow. A brief that says review my portfolio produces a worse result than one that says tell me whether to hold or sell this asset over the next eighteen months.
How firms charge, and what that signals
Fee structures fall into fixed-fee per engagement, hourly, and retainer. Some firms also take transaction-contingent compensation, which reintroduces the conflict you hired a consultant to avoid.
Ask directly whether the firm earns anything if you transact. The answer tells you more about the advice you will get than any credential on the website.
Questions worth asking before you engage
Ask what the deliverable is and when. Ask who does the work, since the person selling the engagement is not always the person performing it. Ask what would make the firm recommend against the deal, and listen for whether the answer is specific.
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