An M&A (Mergers and Acquisitions) transaction involves the process of one company merging with or acquiring another. It can include purchasing assets, stock, or a combination of both to create a more competitive or strategically aligned entity.

An M&A advisor helps navigate the complex process of a merger or acquisition. They provide expertise in deal structuring, valuation, negotiation, due diligence, and post-deal integration, ensuring a smoother transaction and maximising value.

A business is typically ready for M&A when it has strong financials, a clear market position, and the owner is looking to exit, grow, or achieve strategic objectives. An M&A advisor can assess readiness and guide you through the preparation process.

The main steps include:

• Initial consultation and strategic review

• Preparing for the transaction (valuation, structuring)

• Identifying and engaging with buyers/sellers

• Negotiating terms and deal structuring

• Conducting due diligence

• Finalising the transaction and closing the deal

• Post-transaction integration or transition

Due diligence is the process of thoroughly evaluating the financials, operations, legal standing, and potential risks of the business involved in the transaction. This helps both buyers and sellers understand the true value and any hidden liabilities.

IBusiness valuation in M&A considers financial performance, market conditions, growth potential, comparable sales, and other strategic factors. M&A advisors use methods such as income, market, and asset-based approaches to determine the business’s worth.

Common challenges include negotiating terms, managing cultural differences (especially in mergers), regulatory hurdles, financing issues, and ensuring proper integration after the deal is closed.

M&A advisors assist with asset sales, stock sales, mergers, acquisitions, joint ventures, recapitalisations, and more, depending on the strategic goals of the client.

You should expect your advisor to provide strategic advice, help structure the deal, guide negotiations, manage the transaction process, protect your interests, and provide post-deal support as needed.

The costs typically depend on the size and complexity of the transaction. M&A advisors usually charge a success fee based on a percentage of the deal’s value, as well as retainer fees for advisory services.