In the fast-paced world of modern business, mergers happen for many different reasons. A company may decide that purchasing another company is the easiest way to expand into a new market, or both businesses may come to the conclusion that they will have more leverage operating as a single entity.
But whatever the reason behind the merger, the process can be challenging. Not only is there sometimes a degree of uncertainty about what the merger will entail, before the practical and administrative challenges of merging the businesses can be addressed, the companies themselves need to negotiate what exactly the terms of the merger will be.
Given how much is at stake in a merger for employees, management, and shareholders, it’s not surprising that some businesses opt to bring on professional mergers and acquisitions advisors who can help create more seamless negotiations.
What Do Mergers and Acquisitions Advisors Do?
Depending on the firm, mergers and acquisitions advisors may handle a wide range of different tasks, but most offer a package of services that includes things like:
- Business valuation
- Assisting with due diligence
- Identifying potential synergies
- Providing legal advice
- Handling negotiations
For smaller companies that have never gone through a merger before, this takes a lot of the pressure off of the executives and helps avoid a scenario where a business is pressured into a merger without a complete understanding of the terms.
It also simply makes the merger easier by guiding companies through the legal aspects of the process and expediting the paperwork. For example, companies like Beacon Mergers & Acquisitions have teams of experts equipped to handle most parts of the merger in-house.
What to Expect When Working with an Advisor
What to expect from working with a mergers and acquisitions advisor depends in part on whether your business is being acquired by another, or you are the acquiring business. In general, advisors will help you plan through the merger, help find potential partners if needed, and guide you through the process while taking on certain aspects of it themselves.
But mergers and acquisitions advisors don’t just bring together a team of experts with the know-how to handle every aspect of the process. Their extensive experience with deal-making in a range of different industries means they can quickly spot a bad deal and help you negotiate a better one.
For this reason, it can be beneficial to bring on an advisor early so you can save time and get the best possible merger deal. But if you are already in the early stages of a merger, it may still be worthwhile to get in touch with advisors to see what services they can offer you.
A merger is always going to be a disruptive experience. But if you follow the right steps and get help from experts who know how the process works and can guide you through it, your merger can be the beginning of a successful and exciting new chapter in the life of your business.