Why You Need a Merger and Acquisition Financing Advisor

Posted on: April 22nd, 2013

Merger & Acquisition Advisor The Merger and Acquisition game is an unusual one. Part art, part science, and part psychological warfare.

There are a lot of functions involved in the process be it financial, analytical, legal, or communication. Most sellers are not very sophisticated and are not aware of the various ways they can lose value throughout a deal.

A good Merger and Acquisition Financing Advisor can help you negotiate a better price and also set up the financing for the closing. They provide a one-stop shop level of value to your process.

A Merger and Acquisition Financing Advisor brings the back end of the acquisition process into the front end of structuring the deal. They will anticipate lender issues with respect to credit underwriting or quality of financial reporting.

This saves you time and money throughout your process. High quality Merger and Acquisition Financing Advisors can quickly size up a deal and assess how bankable it is.

They can layer out the deal structure and advise you on creative ways to close the value gap with the seller. The best Merger and Acquisition Financing Advisor understand the pressure points of the deal.

If required, they know how to recut the deal mid-stream without blowing the deal up. In the acquisitions arena, it is said that the best Merger and Acquisition Financing Advisors are worth their weight in gold.

Their fees are miniscule compared to the value they bring their clients. These advisors will pay for themselves many times over because of the quality of their sage-like counsel.

As the Fed decides to ease interest rates, middle market acquisition financing structures will benefit in a number of ways. The underlying values of middle market companies will increase leading to a higher enterprise value and lower loan to value ratios for existing portfolio companies of acquisition financing lenders.

The role of acquisition financing is infrequently elevated above a functional transactional one. When a business needs financing to acquire, they go to the market and source acquisition financing to supplement their equity investment to close the deal. Despite existing in many different forms, acquisition financing is rarely explained in terms of the value it brings to the acquirer.

Acquisition financing underwriting usually focuses on business and financial issues that underpin the stability of cash flow. Providers of acquisition financing usually validate the durability of a company’s competitive advantage and the depth of its resource base. Environmental issues are usually not a major part of the analysis in today’s service and technology-based economy.