Advisory: the key to generating value and closing a good deal

2024/02/27

Posted by 3Capital Partners

In the business world, mergers and acquisitions (M&A) are fundamental for companies that aim for growth, expanding markets and increasing their share in the sector. However, the M&A process is intricate and full of obstacles, requiring expertise and a strategic approach. Having a specialized advisor can be crucial to the success of a transaction.

Unlocking challenges with Advisory M&A

During the merger or acquisition process, it is normal to face challenges that can complicate or even stop the business. A specialist has the skills and knowledge necessary to identify and resolve these problems, keeping the process flowing efficiently. For example, if a company faces regulatory compliance issues in an international acquisition, a consultant experienced in this type of transaction can provide precise guidance to overcome these challenges, ensuring that all legal requirements are met.

However, in addition to mediating the bureaucratic process behind the search for buyers and even negotiation, an Advisory has the mission of generating value for your company. Consequently, with greater organization and added value, negotiation opportunities are greater and so is the CEO’s power of choice.

In M&A consultancy, it is important to highlight that Advisory brings with it valuable knowledge in business management. This experience allows them to understand not only the financial and legal aspects of the business, but also the strategic and operational implications of the transaction. This comprehensive view is crucial for making informed decisions and enhancing the value of the enterprise. A consultant can help the company evaluate whether a particular acquisition is aligned with its long-term strategy, considering factors such as operational synergies, team integration and geographic expansion.

How the consultant’s work works

In practice, the work around a successful transaction begins long before identifying potential deals. A consultant can add value in several aspects during the negotiation of a company. Some of them are:

• Strategic Guidance: providing strategic insights that enable the organization to make more solid and informed decisions.
• Networks: Advisory board members bring vast networks of contacts that open doors to business opportunities, partnerships and access to valuable resources.
• Specialized Advice: specialized guidance in key areas, saving time and resources that would otherwise be spent on external consultancies.
• Innovation and Diversity of Perspectives: The variety of perspectives of external members promotes innovation and avoids the pitfalls of groupthink.
• Better Decision Making: With guidance, the organization can make more informed decisions, resulting in financial and operational improvements.
• Leadership Development: A leadership development opportunity for team members.

However, it is crucial to select an M&A consultant carefully, considering their reputation, track record of success, experience in the company’s specific industry, and ability to understand your business needs and objectives.

By choosing the right consultant, companies can significantly increase their chances of obtaining positive and successful results in their negotiations, thus boosting their growth and success in the market.

Count on 3Capital advisors

At 3Capital, the first step is to understand the scenario and challenges faced by middle market entrepreneurs and investors, as well as their business strategy. Some are looking for a succession plan, while others want to sell their company to a strategic partner, invest in growth or make acquisitions of competitors to consolidate the market.

We are here to advise you and complete transactions. Our partners, with more than 30 years of business experience, have the necessary expertise to support our clients in a personalized way in each project, ensuring that they are carried out successfully and achieve the desired results.

Leave your company in good hands, contact our team and find out more:https://3capitalpartners.com.br/contato/