Mergers with, and acquisitions of, other companies are two ways that existing companies can increase their growth quickly. Mergers and acquisitions (M&A), sometimes also referred to as ‘restructuring’, refers to the process of creating more value by combining with or acquiring another company. The M&A process can, however, be a daunting one involving significant capital, paperwork, government regulatory requirements, legalities and complex accounting procedures to reach a successful conclusion.
Therefore, when a company undertakes this process they usually engage M&A consultants to provide the necessary expertise to help smooth the process and ensure a successful outcome. A consultant M&A has particular skills and experience in the area as follows:
• Due Diligence and Assessment – an M&A consultant will often help with the commercial and vendor due diligence and assessment of the deal that is required before a transaction can proceed. It is necessary to determine whether the acquisition make sense commercially, any potential pitfalls, whether it results in long-term competitive advantage and whether there is an actual value add proposition to the acquisition.
• Asset Evaluation – no two companies are the same and there are many complications in selling a business and its associated assets. Some may be distressed, for example, and not core to the business going forwards. It can be difficult to untangle these assets and divest them properly. Consultants will provide a compelling business case as to why certain assets are, or are not, attractive to the company and what to do with them.
• Senior Executive Buy In – consultants M&A need to deal with the highest executive levels when consulting on an acquisition (CEO and CFO level). They will help assess the fundamentals of the business and its goals for the future. They will assess how an acquisition will bring them the competitive advantage that is the main driver for the transaction. This requires broad industry experience at a project level to provide the ability to combine different solutions with different problems. They will provide the bridge between corporate finance and overall company strategy in order to complete the deal.
M&A consultants will have excellent educational qualifications, broad work experience in the relevant industry and a background in corporate financing (usually from a role at an investment bank, accounting firm or similar institution). The also have an interest in M&A beyond mere deal-making. Their goal must be to help companies to succeed through the M&A process to realize value and to develop their business long term plans.
