Financial Advisors in M&A Transactions


Summary

This practice note discusses the primary roles financial advisors play in M&A transactions; the advantages and disadvantages of hiring a financial advisor; and considerations for the buyers and sellers when retaining a financial advisor. M&A transactions frequently play a crucial role in a company’s life cycle, and the benefits of a successful M&A transaction can be substantial. However, bringing the transaction to successful completion to achieve those benefits often requires skill sets that many companies do not have in-house. Even companies that have some staff with relevant experience often find it is infeasible to devote those staff to the transaction, because their skills are needed within the business to continue operating it effectively during the transaction process. For these reasons, some companies choose to engage financial advisors to assist with M&A transactions. In public company deals, the financial advisors are usually large investment banks. For smaller, private ...