How many M&A advisors do you really need?

May 1, 2024

How many M&A advisors do you really need?

Every year there are a large number of mergers and acquisitions around the world. However, it is not always easy for the parties to reach an agreement. They need specialized mediators to reach a consensus. But M&A deal advisory can be entrusted only to reliable partners, and representatives will be such a partner for you.

One of the most popular questions for participants of such deals is how many such advisors are needed. They often spend a lot of money on their commissions. However, not always a large number of consultants brings the desired result. Let's take a closer look at the optimal number of M&A advisors needed to close a deal and whether they are needed at all.

What is the optimal number of M&A advisors to conduct a deal

What is the optimal number of M&A advisors to conduct a deal

This question is of interest to many investors. Since the impact of multiple M&A advisors on deal value is very high when selecting companies for takeover or merger partners. Therefore, funders often use several strategies, namely:

  • hiring a large number of advisors;
  • hiring 3-5 firms for a deal;
  • hiring a single company.

In the first case, one can get quite a lot of job advice and merger proposals from different companies. However, as many people, have so many opinions. In the end, it may turn out that the funder himself will be confused by the large number of proposals and a really interesting option for the merger will be lost in the stack of proposals.

By hiring multiple firms, the flow of information (and competition among consultants) will decrease. However, each consultant will try to prove its exclusivity. As a result, you may end up with several radically different opinions on a merger or acquisition. This will lead to indecision on the part of the funder and the possibility of missing a worthwhile moment to take a risk.

The most interesting strategy is to work with a single advisor. In this case, there will be one opinion. If the investor is experienced, they will be able to appreciate the offer that is given to them by the M&A advisors. However, there is a risk of choosing a firm with inexperienced staff. Therefore, before hiring consultants it is worth checking their capabilities, and skills and if the specialists meet the level of employees, then you can start cooperation.

What benefits of an M&A advisor can be obtained when closing a deal

The first thing to evaluate intermediaries on is what benefits of M&A advisor can be obtained from cooperation. Most companies in this field are ready to:

  • analyze the activities of enterprises for mergers and acquisitions;
  • assess the risks of such a step;
  • provide financial statements and post-transaction strategy;
  • provide legal advice on mergers and acquisitions;
  • build communication between departments after the transaction;
  • build a hierarchy of departments and line managers.

If intermediary companies are willing to help with these issues, they can be considered candidates for cooperation. However, if the enterprise needs unique and individualized advice, it is worth searching among the applicants more carefully.

Where to find reliable M&A advisors

Where to find reliable M&A advisors

To establish streamlining M&A advisor team communication, a founder needs to find reliable advisors. There are many good companies on the market today that are ready to help companies with M&A issues. But these deals are very complex and entrusting them to inexperienced employees is a highly questionable decision.

Representatives of are ready to become such reliable partners. They are a team of experienced professionals who have already closed more than one similar transaction. Before informing the client of the final decision, the employees of this company conduct a thorough analysis of the financial performance of both companies, assess all the risks of this step, and only then inform the client about the possibility of a merger or acquisition.

In case of detection of the slightest risks or unreliable information, employees conduct additional analysis with notification of clients about the reasons for a more detailed study. If the deal is recommended, preparations are made for communication between the departments of the two companies, and the most optimal hierarchy of subordination is built.

Of course, any company can try to organize this process on their own, but with the help of consultants from, the costs of money and time will be many times lower.


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