A merger or acquisition (M&A) is one of the most complex processes that your business will have to contend with - and the process is most likely to profoundly impact the trajectory of your company.
What Does an M&A Advisor Do?
M&A advisors help businesses navigate the often messy, high-stakes world of mergers and acquisitions. They’re not just there to crunch numbers—they’re the ones mapping out strategy, introducing the right buyers or sellers, and keeping negotiations on track.
Some advisors focus on helping companies expand by finding targets to acquire. Others specialize in getting a business ready to sell and finding qualified buyers. Either way, they’re usually involved from early conversations all the way through to deal closing.
This isn’t small-deal territory. Unlike business brokers, who typically handle local, lower-value transactions, M&A advisors are brought in when deals involve more complexity—larger sums, multiple stakeholders, or international considerations. Their job is part finance, part negotiation, part long-term strategy.
The role of an M&A advisor can be to:
- Act for both buy-side and sell-side companies
- Advise throughout the M&A process, from strategy to global onboarding
- Serve small to medium-sized companies in lieu of large investment advisors
- Offer unique, niche, and regional contacts and industry knowledge to support a company’s merger and acquisition strategy
Because they have comprehensive industry knowledge and analysis, M&A advisors can provide support across the range of tasks needed for success. They can even help you begin the process by short-listing potential companies for a merger.
Once the process is underway, however, advisors will primarily support the following:
- Creating pitches, decks, and other marketing tools
- Initiating confidential first contact
- M&A valuation and due diligence management
- Transaction pricing and structuring, as well as negotiation
- Document review and preparation
- Onboarding after the transaction
On top of this, an M&A advisory firm provides access to their network. Knowing who to connect with and which companies are ready for an approach is an essential part of how M&A advisors help companies prepare for the future.
The Benefits of Working with an M&A Advisor
Working with a leading M&A advisor is similar to adding any other specialist to your team. Instead of the same internal leaders with limited familiarity, you’re engaging someone with tested knowledge and hands-on experience tp help mitigate common M&A risks. M&A advisory provides:
Deep Industry Knowledge
While your business and marketing analysis certainly includes competitive awareness in terms of products, trends, and changes in leadership, it may not delve into the level of internal structures, physical or intellectual material sourcing, or resource management. M&A advisory isn’t just looking outward at the competition and their products and services but at your industry’s underlying mechanics and moving parts.
Critical Networks
You can reach out to almost any company worldwide, but do you know who would have critical data related to corporate valuation or what pain points to address in early negotiation? M&A advisors develop contacts beyond the front line of businesses, either in their fields of specialty or regions, or both.
Efficiency
M&A advisory services are designed to help with the full process from start to finish. They can:
- Ensure critical functions, communications, and milestones aren’t neglected
- Oversee project management and internal communications
- Promote internal acceptance, support, and engagement
Decision Consulting
One of the most critical aspects of M&A is understanding when to work through barriers, when to keep negotiating, and when to cancel a deal.
All of the involved members of your leadership team—as well as your legal team—may offer opinions based on their perspectives and mandates, but an M&A advisor understands what signs to look for. They can:
- Interpret the importance of different obstacles
- Identify which negotiation tactics will have the greatest chance of success
- Evaluate the pros and cons of pressing forward versus changing direction
M&A Advisors vs Business Brokers vs EOR Partners
The Different Types of M&A Advisors Explained
There are many components to a successful M&A. This also means that there are also many numerous kinds of M&A advisory services that your company may need to utilise during this delicate process.
Financial M&A Advisory Services
At the heart of any M&A transaction lies a robust financial analysis and valuation process. Financial advisory services in this realm are typically provided by two main types of firms: investment banks and specialised M&A advisory firms.
The key difference between these two types of providers is size.
Investment banks, such as Goldman Sachs, Morgan Stanley, and J.P. Morgan, offer a full suite of financial services, including M&A advisory. Their strength lies in their ability to provide comprehensive solutions, leveraging their expertise in areas like capital markets, trading, and underwriting. However, some companies prefer to engage dedicated M&A advisory firms.
M&A advisory firms, (sometimes referred to as boutique investment banks), are solely focused on mergers and acquisitions. These firms offer a more specialised and tailored approach, with a deep understanding of the M&A process and industry-specific expertise.
Both investment banks and M&A advisory firms provide critical services such as:
- Development of marketing materials (teaser, pitch decks, investment memorandums)
- Buyer and target company valuation
- Deal origination
- Creating target company longlists and shortlists
- Approaches to buyers and sellers
- Conducting Initial approaches and negotiations with third parties
- Deal closing
- Capital raising
- Company restructuring
Legal M&A Advisory Services
Legal complexities are inherent in M&A transactions. This means that many companies benefit from the expertise of legal advisory services.
Legal advisory service providers can help you with any of the following:
- Regulatory compliance
- Legal due diligence
- Contract negotiation and drafting
- Antitrust and competition law considerations
- Intellectual property and licensing matters
Strategic M&A Advisory Services
Beyond the financial and legal aspects, strategic advisory services play a pivotal role in ensuring the long-term success of an M&A transaction.
Strategic M&A advisors conduct in-depth market analysis and industry research, facilitating target identification and screening processes at the start of the process.
They also contribute to integration planning and execution, as well as post-merger management and restructuring efforts. Their strategic insights and recommendations help align the transaction with the overarching business objectives and ensure a seamless integration of operations.
Examples of strategic advisory services would include companies such as:
- Management consulting firms (e.g., McKinsey & Company, Boston Consulting Group, Bain & Company)
- Specialised M&A consulting firms (e.g., L.E.K. Consulting, Cornerstone Research)
- Industry-specific consulting firms (e.g., Altman Solon for telecom/media)
HR M&A Advisory Services
In the realm of human resources advisory services, a unique and increasingly valuable solution has emerged: the Employer of Record (EOR) model.
During an M&A transaction, the integration of acquired talent can be a significant challenge, particularly when dealing with cross-border workforces. An EOR can streamline this process by acting as the legal employer of record for employees across different countries and jurisdictions.
By taking on the administrative and compliance responsibilities associated with employment, an EOR ensures that all applicable labour laws, regulations, and local employment practices are adhered to, minimising the risk of non-compliance and potential legal ramifications.
