Mergers and acquisitions are some of the most stressful processes in the business world. The stakes are high, and there are many risks alongside incredible opportunities.
How do you navigate the waters of M&A?
Consulting services are a huge help. Here at Corsica Technologies, we’ve helped numerous clients through technology transformations, mergers and acquisitions, and other challenging scenarios. Here’s everything you need to know about M&A consulting.
What is M&A consulting?
Mergers and acquisitions consulting, also known as M&A consulting, is the process of working with expert advisors to develop and execute a strategy for acquiring or merging with another business. Since M&A consulting covers every aspect of the process, it requires deep expertise in business strategy, operations, personnel management, technology, regulatory compliance, and finance. This type of consulting covers a broad range of specific scenarios, and no two M&A processes look the same.
Why work with a consultancy for M&A?
Mergers and acquisitions are complex, high-stakes initiatives. Improperly executed, they will introduce risks for the organizations and people involved. An expert consultancy brings a perspective that is difficult to get with internal resources. This is key to ensuring a smooth transition and minimizing risks.
Here are the main benefits of M&A consulting.
1. Unbiased perspective
Everyone in your organization has something to lose or gain in an M&A initiative. This makes it tough to be objective.
A consultancy isn’t influenced by your existing internal culture, processes, or biases. Rather, a consultancy brings an outsider’s view to the table, which means they can uncover pitfalls and opportunities that your team may not see. With no skin in the game, they’re equipped to make the very best recommendations for all stakeholders.
2. Deep experience
When you go through an M&A process, you want someone by your side who’s done this before—ideally not once, but many times. They can ask tough questions like:
- What risks are emerging in the target company’s niche?
- How is the company positioned to deal with those risks?
- What processes and technologies will make integration difficult?
- How can new technology initiatives make integration easier?
A consultancy brings a deep bench of M&A experts who know the process inside and out. They know what works and what doesn’t—and they know how to adapt best practices to complex scenarios.
3. Industry expertise
The right consultancy offers an expert view on the unique pitfalls and opportunities of your industry. This can be tough to get without the perspective of consultants, as it’s hard to know what goes on behind your competitors’ closed doors. The right M&A consultants can bridge this knowledge gap with industry-specific insight.
4. Integrated view of business strategy and technology
Many organizations underestimate the complexity of the technological side of an M&A integration. A consultancy focused on IT may be able to help—but they may lack expertise in business strategy.
The right M&A consultancy should bring both types of expertise together under one roof. You want consultants who understand both the business reasons for technology decisions—and the technologies themselves. This is critical to achieving true technological integration.
Vetting a consultancy
What does a right-fit consultancy look like?
While every M&A scenario is unique, here’s what you should look for in a consulting firm.
Strategic acumen
Mergers and acquisitions come with overwhelming details and decisions. These details need to be covered thoroughly, but you don’t want to lose sight of the big picture—the why. The right consulting partner should work directly with you to develop your M&A strategy, including high-level goals and measures of success.
Target identification
Perhaps you’re approaching M&A with a specific business in mind. If not—if you’ve simply identified that you need to go through this process—then a good M&A consultancy should be able to identify right-fit companies with which to merge (or to acquire).
Due diligence
This is a critical phase in the process. Working with your M&A consultants, you’ll want to get a full, detailed picture to understand the risks and opportunities of each potential target company. The best M&A consulting services should include:
- Financial and operational analysis
- Regulatory compliance analysis
- Technology footprint analysis
This is where consultancies really shine (or fall short). Ultimately, your integration will only be as good as your planning, and your planning will only be as good as your due diligence. Make sure your M&A consulting company has a strong track record here.
Integration planning
How are you actually going to integrate two organizations? This planning is critical to success. The best M&A consultancies will have recommended processes and workflows to use, with modification if necessary. They should cover:
- Operational integration
- Management and team integration
- Technology integration
Negotiations and transaction execution
Mergers and acquisitions can take some time in the negotiation phase. The right consulting partner should have plenty of experience here and be prepared to guide you through the process. While M&A consultants don’t serve as legal counsel, they can advise on the potential business and technological impact of contract terms, helping you understand what’s favorable in the long term.
Integration execution
Once a transaction is finalized, it’s time to integrate both businesses. Some M&A consulting companies won’t help here, as they lack technological expertise. But the best companies can actually integrate your systems, processes, and workforces for you—or advise you if you’re doing it yourself.
The takeaway: Get the expert M&A consulting you need
Mergers and acquisitions are challenging and stressful—but help is available. When you choose the right consulting partner, you get the guidance and advocacy you need to craft mutually beneficial agreements, then execute them. Here at Corsica Technologies, we’ve helped 1,000+ clients through consulting, managed services, and digital transformation. Contact us today, and let’s take the next step in your M&A journey.
Ready to start your M&A journey?
Reach out to schedule a consultation with our M&A specialists.
