An Introduction To Merger And Acquisition Consulting

By Allyson Burke


In simple terms a merger involves one or more companies coming together while an acquisition is when company buys another company. Inevitably there are a lot of concerns involving how this will work and who will benefit when the companies merge or when one is bought by another. The best way to ensure the process is smooth as possible is to find the right merger and acquisition consulting.

As with a lot of business deals the concerns are often financial. If one company is buying another there is often the concern that the other one they are buying may not offer the return on the investment the other company will have to make. This will mean that a smaller company will have to reassure them that this is not the case.

However legal issues are just one aspect of a deal. Inevitably financial problems are a big potential stumbling block. Both parties need to be satisfied that any deal is in both their interests and that each company involved will be able to fulfill their part of the deal.

For example a larger business needs to be able to demonstrate that they have the funds in order to purchase the smaller company. There is the worry that unsustainable debt may be used in order to finance a deal. The figures need to add up in order to reassure people that the long term future of a merger will be secure and that there will not be too many job losses once the deal has been completed.

In this instance you need someone who has sufficient business experience to look at the financial details of a deal. Ideally this should not be purely theoretical. If they can show that they have been involved in a number of successful deals as a result of their consultation then it is more likely that their services will benefit you, especially if they have worked for companies in the past.

Another potential concern is in how the new business will be run after the deal has been completed. For example the smaller company may have a reputation for a certain quality of product or ethical standards. There is the worry that a larger company buying the smaller one may compromise those standards and this perception can be difficult to change.

Whoever you choose to consult on a deal you need to be sure that they know what they are talking about. While working on a number of deals for a long time is good ideally you also want someone who has been involved in a number of successful deals and can demonstrate how their consultancy benefited the parties involved.

You can find a number of merger and acquisition consulting businesses online. It is worth talking to at least three consultants to see how their experience compares with others in the local area. Use your regular search engine to see who is available in your local area and is most appropriate for your needs.




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