Mergers & Acquisition (M&A) Advisory – A Value Addition to Your Business
Growth earned over the years might add good value for an organization.
But there comes a tipping point where the market reach or expansion of an organization will need to touch a new high to fight the competition.
This is where the concept of Mergers & Acquisition steps in!
Mergers & Acquisition (M&A) strategy has been on demand globally owing to its value-addition to firms in their merger or acquisition process.
But surveys say that the success of a Mergers & Acquisition process purely depends on the M&A Advisor you choose to complete the transaction.
A study by the University of Alabama, which surveyed 3,281 acquisitions, found 47 percent of successful transactions reporting the presence of ‘M&A Advisor’ in executing the process.
Looking at transactions by sector, business owners report a 6-25% rise in their final sales prices with an M&A advisory firm involved in the process.
Another research that surveyed middle market sellers, with M&A Advisor in the process, found 83% of them reporting a clear match between advisory estimates and the final results.
4 Ways M&A Advisory Adds Value to your Business Include:
1) Manage Internal Resource
Does your organization lack a corporate development team? Don’t worry! M&A Advisory can take up the charge of internal resource planning for executing your acquisition or merger, by relieving the burden on your CFO, CIO or any other executive who typically handles M&A process.
2) Expertise Support
Doing all by self might not be possible all the time, more specifically with M&A process. The M&A process involves many critical steps, right from planning initial strategies to reaching out to the target for negotiations and closing the deal and more. You will definitely need some expertise support.
M&A Advisors can take care of this with ease based on their experience in previous projects and market awareness over the period.
3) Effective Handling
M&A process is more of handling relationship between the buyer and seller. Considering the fact that selling involves owner’s emotional bonding with the company, you will need to make a very subtle and decent move in handling proposal or further negotiations.
On the other side, acquiring doesn’t end with buying, and often requires buyer-seller coordination for some period until the buyer gets used to the new environment. All these definitely need effective handling, which M&A Advisory can take up!
4) Opportunity Evaluation
Evaluating an opportunity is very important before going ahead with any process. Same is the case with M&A. Hire an M&A Advisory firm, which can assist you in the process right from the very first stage of the process i.e. evaluation.
Proper evaluation decides the success and the value that an opportunity can add to your business.
In a nutshell, a good Mergers and Acquisition Advisory Services can help you:
- Identify ways to present the merger or acquisition proposal in a better way
- Bring in a strategic fit between buyer and seller synergies
- Perform good negotiations either at first instance or in case of revivals
- Expedite the process depending on your readiness to the deal
- Find creative ways to get the deals closed in a hassle-free manner
- Manage key time-consuming processes such as meetings, presentations and calls
- Improve the scope of transaction through extended network, market reach and awareness
- Attract prospective deals through instant credibility brought in by the Advisor
- Express and share ideas openly about the transaction to be proposed art of negotiation
- Maintain long-term relationship with the business partner even after the transaction
- Avoid most common bottlenecks that arise in M&A process
- Implement proven methods, templates and strategies to attract potential partners for immediate closure of the deal
- Identify Key Performance Indicators (KPIs) that speak your business success and trends well before they are discussed in the sale process
- Manage costs incurred for other advisors (such as tax, accounting, legal, etc.) involved in the process
- Get additional resources beyond your in-house capabilities, even in complex situations
- Get additional support brokerage support to facilitate transactions
- Align the process with business objectives
These are some of the best possible ways a good M&A Advisory serve your M&A process.
Looking for one? Get in touch to get the best out of Veritis M&A Services!