Mergers & Acquisitions Advisory

Mergers & acquisitions advisors can perform a valuable function in preserving and creating jobs, and maximizing shareholder value. They can benefit sellers by displaying their business to a wider range of potential purchasers than the seller might be able to identify. Such exposure can develop into competing bids, thus assisting the seller to maximize the sale price and perhaps shortening the time to conclude a sale.

The advisor engaged in a sell-side assignment will perform a comprehensive valuation of the business to assess the potential purchase price that buyers may be willing to pay. This helps the seller to set guidelines for a range of acceptable bids, judge offers received, and eventually guide negotiations of the final purchase price.

Either a negotiated sale, targeted auction, or broad auction are the processes selected to drive the business to a successful close. A negotiated sale would involve selecting a single party to approach. A targeted auction may be more appropriate when the seller wants to address a select group of buyers. A broad auction reaches out to as many potential buyers as reasonably possible. The broad auction would invite both financial and strategic buyers to maximize competitive dynamics and increase the probability of finding one buyer willing to make the best offer. By casting as wide a net as possible, the broad auction process typically provides the seller with the best opportunity to maximize the value of the business.

Stages of the Deal