What Value Does M&A Advisors Add
If you are a business owner contemplating selling your business or acquiring another, you likely have many questions about the merger and acquisitions process. Several fundamental ones are: "What can an M&A banker do for me?"; "Can I complete a transaction without a banker?"; and "How do I choose the best banker for me?"Here are some brief answers to those questions:
What can an M&A banker do for me?
Planning - Even before a transaction is contemplated, a banker can improve the likelihood of a successful M&A outcome by guiding a company's go forward strategy. Bankers knowledgeable about a client's industry can share insights on market trends and opportunities, and provide financial performance and valuation data on comparable businesses. Such information helps the client objectively assess its operations and adopt a development plan enabling it to prevail in the longer run. An M&A advisor also assists companies in determining when they are ready to go to market. For example after initial analysis, the right conclusion may be that a company is not presently best served pursuing a transaction, and may be better off focusing on organicgrowth in the near term. Reasons may include the company's financial profile or current market valuations. And if a company is deciding among several alternatives such as an acquisition, merger, spin-off or financing, a banker can weigh the options and perform the financial and strategic analysis necessary to support its recommended action.
Positioning - Once a company has initiated the M&A process, a banker helps the client present its business most favorably to prospective parties at various stages - from introduction through management presentations and due diligence. This increases the likelihood of finding a suitable partner and optimizing deal value. A banker familiar with other companies in the client's market will have color about what potential M&A partner may be thinking and can effectively speak to that company's interests and concerns. If the goal is to find a suitable acquirer, the M&A advisor typically drafts a memorandum describing the client's business, presenting information in a manner that is most compelling to its intended audience.
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ADDITIONAL TEMPLATE PREVIEWS
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Guides- Anatomy of LOI - Ver1
- Anatomy of LOI - Ver2
- Asset vs. Stock Purchase
- Purchase Price Payment Considerations
- Ways to Structure the Deal - Ver1
- Ways to Structure the Deal - Ver2
- Ways to Structure the Deal - Ver3
- Structuring Effective Earnouts
- Tax Implications
- What is a Reverse Merger?
Full Buyout
- Asset Purchase - Ver1
- Asset Purchase - Ver2
- Stock For Cash
- Stock For Stock
- Stock For Cash & Stock
- Earnout
- Series A Preferred
- Series B Preferred
- Presenting the Deal - Ver1
- Presenting the Deal - Ver2 (No Preview)
- Presenting the Deal - Ver3
- Presenting the Deal - Ver4
- Presenting the Deal - Ver5
- Business Sale Presentation
Buying or Selling a Business Step-by-Step Procedure - Click Here To View