One of the first questions that owners, that want to sell their companies or to acquire others business, need to solve is if they develop the project internally or they use and external M&A advisor.
First issue they need to evaluate would be if they have the talented internal team to develop the project. It is also important to assess how confidential they need to keep it confidential. Normally, small and medium companies do not have specific teams and they prefer to keep it secret, so they should use an M&A advisor.
A major question also when entering in a M&A process is that business must keep running as usual and that management team cannot lose the focus on their business. M&A process consume lot of time and energy. The sell or acquisition projects must follow a very precise process, and any mistake in any step would end up with the project failure.
The roles of M&A advisors are various but all of them are key aspect for the success of the process. Let us list the most important ones:
- Value of the business
- Creation marketing materials and market the business
- Conducting discussions with prospective acquirers
- Handle confidentiality contracts
- Provide strategic insights and negotiations skills
- Assist during the due diligence
- Resolve transaction issues during all the process
The unique and most important goal of M&A advisors is to create value for sellers or buyers.
Lluís Lluch – CEO