‘Business expansion’ continues to be the core aspect of every firm across industries, irrespective of size, portfolio, or market reach.
This situation is better suited for the IT industry, where change occurs continuously in the form of new technologies and processes.
And it would be best to have an effective growth strategy to stand ahead in this tough competition.
One such solution that the industry offers to achieve a win-win situation is the ‘Technology Mergers & Acquisition’ process. M&A strategy has always had a sound impact on the corporate landscape, where buying and selling are the most common activities.
However, achieving an effective M&A deal is not easy, and it definitely requires the right M&A Advisory to perform a successful transaction.
Here are five key considerations you need to make to choose a perfect M&A Advisory:
1) Expertise
Expertise is the first thing you must consider when choosing a technology M&A Advisory firm. Remember that you are dealing with financials, organizational decision-making, legal matters, Intellectual Property, and more!
All this needs an experienced M&A team with rich expertise in successfully performing multiple M&A deals at their level.
An M&A Advisor can come from a wide variety of fields, such as Accounting and finance, Banking and equity, Taxation, and more. However, it is recommended that the advisor be active in the target industry!
2) Credibility
Given that an M&A transaction involves revealing confidential information such as IP, financials, data, regulations, and more, it’s very important to check the credibility of the advisor you choose. When it comes to IP information, ensure your advisor presents all your credentials, such as copyrights, trademarks, and patents, to the partner in a better way.
Credibility is key in all phases of the M&A process, from taking on the project to exchanging information, performing negotiations, final execution, and the post-integration process.
3) Longevity
Longevity in the market is key to reliability in any service. The same is the case with M&A! There might be a good number of easily available options in the market, but choosing the right M&A Advisory firm with a minimum market presence of 10 years is highly recommended for expected productivity.
Longevity brings along best practices and a success track record of performing similar transactions over the period, along with awareness of market trends.
4) Diligence
Diligence is very important for the partner you work with in your M&A deal. Success purely depends on how well the process is understood and explored step-wise until the final execution. Each step is a building block for the complete M&A process, and missing any single one can cause discrepancies.
A good M&A Advisor typically seeks a project plan, maintains proper documentation, and seeks regular feedback from both sides of the deal throughout the process.
5) Industry-specific Choice
An M&A Advisory with sound experience and expertise in your industry is highly recommendable. Industry-specific choice gives you an advisory service that holds a better understanding of the market and services, the ability to quickly identify potential opportunities in line with your specific product line, and potential industry connections, ultimately resulting in the generation of more bids and value addition for your M&A transaction Mergers and Acquisitions consulting.
Besides the factors above, you can add more to your checklist to help you choose the right M&A Advisory service.
Looking for any assistance? Try Veritis M&A Advisory to see the expected results!
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