Merger and Acquisition (M&A)
M&A Advisory & Consulting
Mergers and acquisitions (M&A) are a part of business, but they can be a scary and complicated process. In the end, businesses, whether on the buy-side or sell-side, want a good deal that they can afford. Our team members have experience at every stage of M&A, helping ensure your deal has the best chance of success. The foundation of a successful deal is building relationships with our clients, clear communication while understanding and keeping their goals at the center of the deal through every phase of the transaction.
M&A Services Provided
With our team’s expertise, we help guide clients through the entire process of a transaction, not just particular spots. Below are some of the services provided through the process of a transaction.
- Client Goal Development
- Financial Analysis
- Teaser and CIM Development
- Go To Market – Find Sellers or Buyers
- Buyer/Seller Relationship Management
- Due Diligence
- Transaction Close Execution
- Post-Transaction Support
Buy-Side vs. Sell-Side Advisory
Whether we are representing a client on the buy-side or sell-side of a transaction will determine the process that must take place. However, key to the entire process is ensuring the Client’s goals remain the focus of every decision throughout the entire process.
The buy-side team is responsible for identifying and negotiating with potential sellers, while the sell-side team works with those sellers to come up with the best strategy and determine which offers are most enticing. We create a strategic plan for our client that outlines the next steps of the transaction and when to move forward. From there, we’ll gather more information—either from our own research or from the other parties involved in the deal—and present all of our findings to our client, who can then make an informed decision about whether they want to go through with the purchase. This whole process has been carefully laid out so that both sides feel comfortable and confident throughout each stage, and it’s what keeps our clients at the center of everything we do.
Post-Transaction Support
A merger or acquisition transaction is an exciting time for all parties involved. Two companies have decided to join forces in order to create a bigger, more competitive entity. This can mean a lot of changes that need to be made quickly, including combining two sets of employees, assets and systems.
One of our fundamental beliefs is that we shouldn’t walk away from our clients as soon as the transaction has completed. TREP Advisors is dedicated to providing post-transaction support for all M&A transactions we work on. This includes a wide range of services that help the companies involved carry out their new mission and make the transaction a success.
Your Expert Partner in Merger and Acquisitions
The TREP Adivsors team will help guide you through the entire process of creating a unique business succession plan based on your needs. The process starts with discovering your goals as the business owner if you had to exit the company in a variety of situations.
Next we look at a snapshot of your current business in a variety of areas: financials, customer and business mix, managerial structure, etc. Once all the information has been gathered, our team will work with you to craft a business succession plan tailor-made to your desires and the realistic state of your business.
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Frequently Asked Questions
What are the phases in an M&A process?
The main phases in the M&A process from a seller’s perspective are:
- Preparation: Before putting a company up for sale, it's important to prepare it for the sale process. This can include gathering all the necessary financial and legal documents, identifying any potential issues that may need to be addressed, and determining a valuation for the company.
- Marketing: Once the company is ready to be sold, it's time to start marketing it to potential buyers. This includes creating an anonymous company profile document for potential buyers. Once a buyer is interested, they will sign a LOI (Letter of Intent), which gains them access to detailed information via a Confidential Information Memorandum (CIM). The CIM provides financial sales history and detailed company information.
- Due diligence: Once a potential buyer expresses interest in the company, they will conduct due diligence to verify the information provided in the CIM and to identify potential risks or issues. This can be a lengthy and detailed process, and involves reviewing financial statements, contracts, legal documents, and other key information.
- Negotiation: Once due diligence is complete, the buyer and seller can begin negotiating the terms of the sale. This includes agreeing on a purchase price, defining the scope of the transaction, and outlining any contingencies or conditions that need to be met.
- Closing: Once the terms of the sale are agreed upon, the final step is to close the transaction. This involves signing a purchase agreement, transferring ownership of the company, and completing any necessary legal or regulatory filings.
What different types of mergers and acquisitions are there?
There are several types of mergers and acquisitions, including horizontal, vertical, conglomerate, and concentric mergers. Horizontal mergers involve the combination of two companies that are in the same industry or line of business, while vertical mergers involve the combination of companies that operate in different stages of the same industry's value chain. Conglomerate mergers involve the combination of companies that are in completely different industries, and concentric mergers involve the combination of companies that have complementary products or services.
In addition to the types of mergers and acquisitions mentioned above, there are also two other types: asset sale and corporate sale. In an asset sale, one company sells some or all of its assets to another company, while in a corporate sale, one company sells all of its shares to another company, resulting in the acquiring company taking over the target company's operations.
What is the typical fee for an M&A Advisory Firm?
The typical fee for an M&A advisory firm can vary based on the size and complexity of the transaction, as well as the level of services provided by the firm. Generally, M&A advisory firms charge a success fee that is a percentage of the total deal value, typically ranging from 3-10% with a retainer up front.
