How a good advisor will reassure parties and cultivate trust in M&A

March 2020Stefania Gaggini, Senior Analyst, KNET Project

When considering an M&A operation, many entrepreneurs or business owners will feel unsure and concerned about the processes involved and the implications on the business as a whole.

In order to counter these uncertainties, it is important to have the right M&A advisory team by your side to help mitigate your concerns and walk you down the road in a smooth and transparent way.

An experienced M&A advisor will make sure that you, as a client, feel safe and confident when going through all the stages in an operation and create a culture of trust in the following ways:

  1. Most importantly, they will tackle the fear of the unknown. Business owners want to feel reassured that after an M&A operation, business will move forward in the best possible way. It is the job of the advisor to help you answer any doubts you might have regarding the future of your business. They will plan and carefully analyze all the possible synergies post-deal and make sure you feel comfortable with what the transaction will look like.
  2. When looking at employees within your business. A well-prepared advisor will scout potential targets or acquirors that will match your business model and culture in the best possible way. Within the deal process they will ensure that the acquirer/target understands current employee needs and respects them post-deal.
  3. When looking at timing, an advisor should plan every step-in order to use time in the best possible way. They will plan documentation and set-up a strong strategy of the deal in a way that aids the entrepreneur in terms of timing and effectiveness.
  4. Last but not least, an advisor will strive for your trust. All documents prepared and presented to future counter-parts should be presented to you and approved beforehand. All sensitive information should always be handled in the most delicate way and only pre-approved information should be disclosed. Also, choosing the right counterpart is extremely important. In this process acquirors/targets should be prepared and serious.

At the end of the day, an M&A operation is usually part of a growth strategy and can be a great opportunity for your business when trusting the right people. A good advisor will always make sure all your doubts are answered and that you feel secure going down this path.