What is an M&A Consultant?

An M&A consultant is a mergers and acquisitions advisor who helps either the buyer or the seller during the transaction process, making for a smoother process.  
M&A consultants arrive right from the start of the acquisition process or during the transition process. They evaluate the acquiring business and ensure that the books are correct. Also, they make sure that important documents are available and reviewed for completeness and risk exposure. These could include:

• Commercial contracts
• Procurement contracts
• Loan agreements
• Tax filings

• Certificates of incorporation

When to Use an M&A Consultant

In an ideal situation, the best time to involve an M&A consultant is right from the start, while you are still considering selling your business.  This gives you time to accurately prepare your business to increase its value.  The sooner, the better. However, it doesn't matter what stage you are at, it's never too late to bring an M&A consultant on board.

How to Pick an M&A Consultant

Picking the right M&A consultant for your company will have a straight impact on how swiftly the sale goes through and on the price and value you will eventually get.
The transaction size will be a major factor when deciding which type of consultant to approach.  However, it’s hard to pigeon-hole consultants into a particular transaction size. Here are some rules of thumb when it comes to transaction advising:

• A full-service investment bank is typically going to advise on high-end transactions for big corporations.  An experienced consulting company will be able to plan and perform operations and transition services.
• Mid-market M&A consultants are usually looking at mid-level transactions.

There’s plenty to think about when selecting a consultant, but the fundamental elements are process, experience, fees, and the team.

Experience

Do they know your industry and business? What is their familiarity with selling similar businesses to yours?  Have they performed transition activities?  How do they perform transition activities?  What is the number of closed deals? Has this M&A consultant been triumphant in attaining premium valuations?  Do they have references? How will your business be marketed? What contacts do they have among possible buyers?

Process

What is their process? Are they well-organized? Will they work diligently during the whole process to set your company up for a winning close and value added transition? How will they keep the sale confidential?

Fees

What are their fees?  How are the fees structured? What do their fees cover? How do their fees compare with other M&A consultants?

Team

Who is on their team?  Will your business receive the energy and time it warrants? What are the experiences and track records of the team members? Do you feel comfortable around the team? Do you trust them?  

How Much Does an M&A Consultant Charge?

Selling and transitioning a business is a laborious project. Fees will differ contingent on which type of M&A consultant you choose to use and what the estimated sale value of your business will be.
Our M&A consulting service is based on expertise, transparency and visibility to KPIs. If you are selling your business, connect with us to discuss your needs and how our consultants can be of service.