Sell-side M&A

The process of selling a business is extremely complex and can be very time-consuming for the owner and the management team. In many cases, depending on the seller’s timeline, the management team may seek the help of advisors to facilitate the sale of the company. By bringing in experts to help facilitate the transaction you are helping ensure that all of the shareholders objectives can be met. In today’s M&A market, well-performing businesses are in high demand as the availability of capital has set new records and the continued importance to drive top and bottom-line growth remains a key objective amongst investors. Considering this activity, it is critical for any business considering a sale to be well prepared and to understand what to expect throughout the process.Our transactional expertise and long-term relationships with strategic and financial acquirers allow us to provide best-in-class M&A advice to our clients, whether they are ambitious founders staying on board, shareholders seeking to monetize their ownership stake, or corporations divesting non-core assets.

Buy-side M&A

As buy-side advisor, we partner with private and public companies that look for acquisitions to boost growth. Some of our buy-side clients look to expand into new markets and geographies while others look to acquire new technologies or facilitate business transformations. Through our network of relationships, we conduct targeted searches, identify acquisition opportunities, provide unbiased advice on the value and merits of acquisition targets, and negotiate deal structure and terms on behalf of our clients. If financing is required, we leverage our network of capital providers to help our clients find cost-efficient acquisition financing.

Creating value: M&A can create value by enhancing the profitability, growth, and competitiveness of the combined firm. For example, a merger between two firms in the same industry can create value by eliminating redundant costs, increasing operational efficiency, and gaining economies of scale. A merger between two firms in different industries can create value by diversifying the revenues streams, accessing new markets, and leveraging complementary resources and capabilities.

Increasing market share: M&A can increase the market share of the combined firm by expanding customer base, product portfolio, and geographic reach. For example, an acquisition of a smaller rival can increase the market share of the acquirer by eliminating competition, capturing synergies, and strengthening its bargaining power with suppliers and customers. An acquisition of a foreign firm can increase the market share of the acquirer by entering new markets, overcoming trade barriers, and adapting to local preferences and regulations.

Achieving synergies: M&A can achieve synergies by combining the strengths and assets of the involved firms and creating value that exceeds the sum of their individual values. Synergies can be classified into two types: revenue synergies and cost synergies. Revenue synergies refer to the increase in sales and income that results from the merger or acquisition, such as cross-selling, price optimization, and innovation. Cost synergies refer to the reduction in expenses that results from the merger or acquisition, such as operational efficiency, economies of scale, and tax savings.

Diversifying risks: M&A can diversify the risks of the combined firm by reducing its exposure to market fluctuations, industry cycles, and competitive threats. For example, a merger between two firms in different industries can diversify the risks of the combined firm by balancing the performance of different business segments, smoothing the earnings volatility, and hedging against macroeconomic shocks. An acquisition of a firm in a different country can diversify the risks of the acquirer by spreading the political, legal, and cultural risks across different regions.

Why do entities merge with or acquire another firm?

One of the most important decisions that corporate managers face is whether to merge with or acquire another firm. Mergers and acquisitions (M&A) are strategic transactions that involve the combination of two or more businesses, either through a friendly agreement or a hostile takeover. The main goal of M&A is to create value for the shareholders of the involved firms by exploiting the potential benefits of the deal. Some of the common motives and benefits of M&A are: