Company leaders that steer acquisition transactions are given the directive to create significant return on investment from the process. Often a CEO, CFO, Board Member, or Business Director is responsible for this effort. They worry about avoiding costly mistakes. They also worry about the challenges of ensuring that the core business performs well throughout the process. Thorough and thoughtful actions by the leaders can build confidence with the board, investors, and employees.
Hiring an investment banking firm is an important step to securing success with acquisitions. While CEOs must wear many hats, they do not spend their entire careers perfecting their M&A skills. Investment bankers do. Investment bankers have to have mastered all aspects of a live transaction: how to value an acquisition from the buyer’s perspective; how to identify and value synergies; how to lead a due diligence effort and ask the right questions to identify risk factors; how to finance an acquisition; and the art of deal design and negotiations, especially in light of timing restrictions associated with short exclusivity periods.
Investment bankers provide M&A mastery to acquirers, both frequent and infrequent. They help the client avoid pitfalls, provide objectivity to the transaction process, and interject wisdom to make sure their clients reach the best deal terms possible and close the transaction.