5 Key Considerations for Choosing a Right M&A Advisory
‘Business expansion’ continues to be the core aspect for every firm across industries, irrespective of size, portfolio and market reach.
This situation suits better for IT industry, where the change occurs on a continuous basis in the form of new technologies and processes.
And, you definitely need an effective growth strategy to stand ahead in this tough competition.
One such solution that the industry offers to get a win-to-win situation is the ‘Technology Mergers & Acquisition’ process. M&A strategy has always had its sounding impact on the corporate landscape, where buying and selling is the most common thing.
But achieving an effective M&A deal is not an easy task, and definitely needs a right M&A Advisory to perform the successful transaction.
Here are five key considerations you need to make to choose a perfect M&A Advisory:
Expertise is the first and foremost thing you need to consider while choosing a technology M&A Advisory firm. Remember the fact 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 Advisory can come from a wide variety of fields such as Accounting & Finance, Banking & Equity, Taxation, and more. However, an advisor who has been active in the target industry is more recommended!
Given the fact that an M&A transaction involves revealing your 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 in a better way to the partner.
Credibility stands key in all phases of the M&A process, from taking up the project to exchanging information, performing negotiations, final execution, and post-integration process.
Longevity in the market stands key to reliability on 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 the best practices and success track of performing similar transactions over the period, along with awareness on market trends.
Diligence is very important for the partner you work within your M&A deal. The success purely depends on how well the process is understood and explored in a step-wise manner until the final execution. Each and every step is building block for the complete M&A process and missing of any single one can cause discrepancy.
A good M&A Advisor typically seeks a project plan, maintains proper documentation and takes regular feedback from both sides of the deal, throughout the process.
5) Industry-specific Choice
M&A Advisory with sound experience and expertise in your industry of operation is highly recommendable. Industry-specific choice gives you an advisory service that holds a better understanding of market and services, 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.
Besides the aforementioned factors, you can more to your check-list for choosing the right M&A Advisory service.
Looking for any assistance? Try Veritis M&A Advisory to see the expected results!