A merger advisor offers consulting to firms considering mergers and acquisitions. Advisors have extensive experience in this area and may be able to help negotiate the best deal. Some have professional certifications indicating successful completion of training programs. Others may rely on their experience and other qualifications, such as law or business degrees, to satisfy clients with their ability to handle the merger or acquisition. Consulting firms may contain a merger division and it’s also possible to work directly with an independent advisors.
Companies considering a merger may bring on an advisor at an early stage of the proceedings. Consultants can offer advice about potential benefits and pitfalls of the process to allow companies to determine at the start whether a merger is right for them. If a merger advisor recommends proceeding, consultants can develop reports on prospective targets and the advisor may review them with key staff members. This goal is to identify a good fit, or to analyze a merger offer, if a company has been approached with a request.
The process of merging two companies can involve considerable logistics. Merger advisors are familiar with every step. They can help their clients negotiate the best deal, including severance packages for employees who may be made redundant, options for upper management, and other clauses. In addition, they can streamline the process as the companies move into a merger, working with personnel to minimize disruption and keep people at work throughout.
Using a merger advisor can have some benefits. Companies may be able to get a better deal by negotiating or approaching a different target, and may not be aware of the options without the assistance of a consultant. Potential mistakes during the process could be costly, and an advisor’s services may pay for themselves by saving money or allowing a company to avoid a bad deal altogether. Guidance can also reduce the risk of making common errors like not filing paperwork properly.
At any given time, a merger advisor may be consulting with multiple companies, or focusing on the needs of just one firm. This representative participates in meetings with both sides, conferences with attorneys and staff, and works with analysts. The company may request regular reports and recommendations throughout the process, which may require in person and phone conferencing. In cases where activities may attract the attention of regulators concerned about monopolies, professional advice from a merger advisor can be critical to help firms navigate inspections and get government approval.
