November 23, 2020 at 7:19 pm #114993
In a world where there is infinite access to information on almost any topic in the world (including Mergers and Acquisitions), that is available for people to access freely. How do you justify your value to a prospective client who is unsure if an M&A advisor would add value?December 1, 2020 at 1:29 am #115284
– External M&A advisor brings external knowledge & experiences from clients in same industry
– Internal teams usually do not have time & experiences to handle PMI projects on top of their day to day job
– Can bring to the table proven solutions, templates, processes
– Is not bound to any internal political ties
– Can implement difficult changes that internal people do not want
– Can bring project management capability in case company does not have PM methodology
– …December 6, 2020 at 6:42 am #115432
Experiences in relevant deals and relevant financial modelling skills are not readily available on the Internet, which will be the advisor’s value-add.December 6, 2020 at 7:15 am #115436
To add to that, a seller structuring an IB’s fee to increase the incentive for negotiating a higher price can help maximize transaction price.December 23, 2020 at 11:57 am #115893
This is really interesting…one area I have seen this play out is pre and post deal. I have worked in advisory firms that specialised in both but have been better in one than the other. The pre-deal side we had a higher fee structure and therefore once the deal was closed it became uneconomical for the client to keep us around. We managed to do this by not playing on the IMO space and positioning our value in one specific area…by having us stay involved we will dramatically increase the probability of the synergies being met and aligned to strategy..it worked, not always, but certainly more so than when we tried to move from pre-deal to IMO.
Many thanksDecember 25, 2020 at 11:37 am #115918
As an external advisor I believe that concrete examples of how your knowledge can bring value to the company will get you far. Past deals and where you brought value. Even though a Google search for M&A will give you a huge number of hits, finding the information that is relevant for your company, this target, this history, this list of complexities etc. will be extremely difficult. What you bring as an advisor is knowledge about how to navigate complexity and a deep understanding of how to bring value from the given situation. If you are dealing with experiences companies/CXO’s you may also offer your services as a neutral sparring partner, being able to identify challenges and ask questions that other (for personal or political reasons) are either not able to see or willing to bring forward.February 28, 2021 at 8:41 pm #117685
I serve as an internal adviser for M&A integration for our company. I work on integrating the education assets from acquired companies into our parent company. I have worked to show my value by giving concrete examples of successes that we have achieved through our integration. This can be done by showing revenue returns which are important to every company. Perhaps the most important way I show my value, though, is by being a communication conduit. I work to get people from both sides talking with the correct people on the other side of the acquisition. This is so valuable but is often left out of post-merger integration activity. By arranging this communication I help establish value that makes the integration valuable.
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