Justifying your value as an M&A advisor

This topic contains 5 replies, has 6 voices, and was last updated by  Sandie 4 weeks ago.

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  • #114993


    Participant

    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?

    #115284

    Luka Mladinov
    Participant

    – 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
    – …

    #115432

    Jass Lim
    Participant

    Experiences in relevant deals and relevant financial modelling skills are not readily available on the Internet, which will be the advisor’s value-add.

    #115436


    Participant

    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.

    #115893

    Ian
    Participant

    Hi

    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 thanks

    #115918

    Sandie
    Participant

    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.

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