Potential clients sometimes ask what are the advantages of engaging with a corporate advisor for a transaction. We’ve found over the last 25 years, working alongside our clients brings a number of benefits to their corporate transactions including:
- removing the day-to-day burden of running a process
- allowing clients to focus on continuing to run the business
- speed & efficiency
- optimising negotiations; and
- help drive a deal to completion.
Often the counter-party in a transaction appreciate the presence of an adviser , as it demonstrates the business is serious in executing the transaction and can prevent less productive conversations & processes knocking the deal off course.
As Corporate Advisors we bring much more to the table than potential interested parties, including: organising & running a smooth process (saving time for both buyer and vendor), generating competition, creating a sense of urgency, negotiating terms and supporting optimal outcomes.
Competitive Tension
To achieve optimal outcomes, companies should create a competitive environment as possible. A competitive environment will create more leverage for the seller and lead to improved terms & stronger offers from parties.
Sometimes, merely hiring an adviser can lead to the party who initially approached ‘feeling’ in a competitive environment and being more open to negotiating terms.
Driving the Deal Forward
Having a clear process is key to driving a transaction to its completion.
By having a timeline clearing articulated, both parties will know where their headed and buyers will feel there is urgency to complete a transaction within a defined timeline. You do not want a process dragging on indefinitely.
Time Management
Managing a M&A process takes a significant amount of time, including managing the due diligence process, legal advisers, and directing the acquirer where to find relevant information. Business owners managing this themselves, can be pulled away from doing what they do best – running a successful business. This can sometimes lead to a business underperforming just when it should be hitting it out of the park!
Negotiator in the Ring
Improved results come from having experienced M&A negotiators in the transaction. Advisors assist parties to transact at the right price whilst maintaining positive relationships between buyer and seller. A Corporate Advisor has experience negotiating with professional buyers – knowing the moves these buyers may deploy during a negotiation, and the best path forward.
We’d be pleased to be a sounding board to answer any market or process questions.
Reach out to the Chessboard Group team at info@chessboard.group