The importance of working with an M&A advisor
When it comes to mergers and acquisition deals, companies that are looking to make a major purchase have a lot of ground to cover. From making sure that financing is in order, to conducting due diligence, it is critical to have all of the necessary details in place to ensure the deal goes through without a hitch. An M&A advisor can provide useful guidance when dealing with these aspects.
Despite the benefits that come from working with an advisor, some companies have been foregoing this step. A recent article in the New York Times discusses this trend, noting that large companies like Google have been taking a different approach by using internal teams to make merger an acquisition deals, rather than seeking advisement through an investment bank.
As the article details, this trend is particularly noticeable in the tech sector. Some technology executives are choosing to go without the help of an advisor because they feel the advisor does not have an understanding of what their company is looking for.
It's worth noting that even though entering a deal without advisement may be a trend among some of these larger companies, doing so has the potential to lead to a botched deal. Additionally, there are many other considerations that factor in to a deal's success, such as whether the corporate cultures will be able to blend, and proper M&A advisement is needed to ensure all of these details line up before making a major deal.
Despite this trend, companies stand to benefit from the expert counsel of an M&A advisor who understands their business and how a potential deal will work to improve the company, whether its through financial gain or the opportunity to expand into a new market.