Mergers and acquisitions (M&A) are complex and high-stakes transactions in the business world. Regardless of the company’s size, whether it’s a startup, small business, a mid-sized company, or a multinational corporation, the right M&A advisory firm can make or break your success.
These firms bring specialized expertise, strategic insight, and rigorous due diligence to ensure that every deal meets your business goals and delivers long-term benefits.
In this guide, we’ll explore the top M&A advisory firms globally, the services they offer, and how to choose the right partner for your next transaction.
TL;DR – 5 Best M&A Advisory Firms
Here are the five best M&A advisory firms to consider:
- JS CPA Strategic Solutions
- Tequity Advisors
- Apex Capital Advisors
- Portage M&A Advisory
- MInerva Valuations
Read on for further information on these listed companies, as well as a breakdown of the services provided by each M&A advisory firm.
JS CPA Strategic Solutions stands out as the best on our list.
We combine M&A advisory, CFO-level strategy, exit readiness, and tax optimization to provide you with a smooth growth and exit process. From implementing buy-side growth strategies to structuring sell-side exits, we ensure no dollar is left on the table.
Book your M&A consultation today and let us help you make informed decisions at every stage of your deal.
What Are M&A Advisory Firms?
M&A advisory firms are consultancies that guide businesses through the complex process of mergers and acquisitions.
They offer specialised services that streamline both sell-side and buy-side mergers and acquisitions transactions. Their expertise encompasses:
- Identifying target companies
- Negotiating and structuring deals
- Conducting due diligence
- Planning integration.
How M&A Advisory Firms Add Value
A good M&A advisory firm can add significant value to you as a business owner in these ways:
- Strategy Drafting: They assist companies in formulating and implementing merger or acquisition goals that align with their long-term business objectives.
- Market Knowledge: They use their knowledge, networks, and connections to identify suitable acquisition targets or potential buyers.
- Valuation: M&A advisors use proprietary valuation methodologies to determine an accurate market value, ensuring clients do not overpay or undersell.
- Due Diligence: Advisors evaluate the financial viability of a deal and identify economic, regulatory, legal, and operational risks associated with it before the transaction’s completion.
- Negotiation: Advisors use tact and strategic thinking to maximize value, minimize downsides, and ensure favorable terms.
- Closing and Integration: They ensure that all parties involved adhere to the agreed terms and plan for operational and cultural integration post-merger.
Core Services Offered by M&A Advisory Firms
Let’s now take a closer look at how exactly M&A advisory firms help businesses navigate the deal-making process.
Here’s a breakdown of each service and how it will benefit your business:
1. Strategic Planning
M&A advisory firms help develop a strategic plan that will ensure a client achieves their goals. Purposes of strategic planning include:
- Clarifying Objectives: This could range from market expansion to product diversification.
- Analysing Market Trends: Evaluating the factors that could harm or boost the deal.
- Target Identification: Finding the right company to sell to or buy from.
2. Valuation
M&A advisory firms help determine fair market values of targets in an acquisition or in-house values in anticipation of an exit. Accurate valuation helps avoid leaving money on the table in the case of a sale and overpaying during a buyout.
3. Due Diligence
Due diligence is the cornerstone of any M&A deal. It ensures that everything is above board by preventing any surprises from arising in the future. It includes:
- Legal Review: Analyzing the intellectual property held by the target company, contracts, liabilities, regulatory, and tax compliance.
- Financial Review: Checking the financial practices, projections, and past performance.
- Operational Review: Analyzing the management practices and their influence on employees
4. Deal Structuring and Negotiation
M&A firms help you determine the deal structure that suits you. For example, a stock purchase entails buying the company’s stock from stockholders, while an asset purchase entails buying assets, often used when buying a business division.
In the negotiation, the firm will outline a payment plan which could be an all-cash deal, an all-stock deal, or a mix of both. The negotiation will also outline the liabilities you will assume upon the deal’s closure.
5. Regulatory Support
M&A deals frequently encounter substantial regulatory and compliance challenges. An M&A advisory firm will cooperate with regulatory bodies to ensure full compliance with both broad and industry-specific regulations.
They will also advise on tax structuring to limit obligations and handle all pertinent filings and disclosures. Additionally, M&A advisory firms also handle compliance with cross-border regulations.
6. Integration Planning
Post-merger integration is crucial to ensuring the success of a deal. Some of the services advisors offer include:
- Aligning the organizational cultures of the merging entities.
- Streamlining management to avoid duplication of roles
- Merging systems and operational processes.
- Retaining critical talent to avoid brain drain.
- Harmonizing remuneration and benefits.
- Identifying cost-cutting and productivity improvement measures.
7. Restructuring and Divestitures
M&A deals are not only about expansion. Companies can use them to pivot into another sector or survive a downturn through restructuring and divesting. Advisory firms can offer guidance in:
- Spinning off a division of the business to give it independence.
- Identifying and selling non-core assets to generate capital.
For more on the services M&A advisory firms offer, do not hesitate to contact us.
Types of M&A Advisory Firms
The category into which an M&A advisory firm falls depends on the scale of deals it structures and its area of specialisation.
Here are the categories:
- Investment Banks: These are companies with significant global reach and focus on large-scale transactions to the tune of billions of dollars.
- Professional Service Firms: These include legal firms that specialise in legal due diligence and compliance, as well as accounting firms that conduct financial due diligence, encompassing tax compliance.
- Boutique Firms: They are smaller than investment banks and focus on mid-market M&A deals. They also specialise in M&A deals within niche sectors.
- Management Consultancies: These firms focus on specific stages of an M&A deal. For instance, they might focus on strategic planning or post-merger integration.
Top 5 M&A Advisory Firms
There is no shortage of mergers and acquisitions (M&A) advisory firms. However, not all of them will meet the hefty standards required to seal a much-needed deal.
Below are the top five M&A advisory firms you might consider:
1. JS CPA Strategic Solutions
JS CPA Strategic Solutions is the top-rated M&A advisory firm.
Our firm leverages its proprietary strategies and models, such as the JS CPA Growth Mosaic, to help clients plan and execute M&A deals that guarantee an outsized return on investment.
Our services include:
- Exit planning
- Tax optimization
- Post-deal evaluation
- Fractional CFO support
- Buy-side and sell-side advisory
Our company helps business owners avoid focusing too much on the spreadsheets and instead create strategic plans that will maximize value.
At JS CPA Strategic Solutions, we use a strategic 5-step M&A process that spans strategic planning to post-merger integration. We focus on mid-market businesses, which also means clients receive hands-on service and have access to senior leadership just as much as junior analysts.
If you want a firm that treats your business like its own, reach out to JS CPA Strategic Solutions.
2. Tequity Advisors
Tequity Advisors is a reputable M&A advisory firm specializing in Software as a Service (SaaS), Business-to-Business (B2B) Enterprise Cloud, and IT companies. They leverage their experience with ecosystems like SAP, ServiceNow, Salesforce, and Microsoft to help clients with strategic exits.
However, the firm’s intense focus on tech companies, especially those with cloud-based operations, sidelines numerous potential clients. In addition, they are a sell-side advisory firm that excludes those seeking buy-side advisory services.
3. Apex Capital Advisors
Apex Capital Advisors is a boutique M&A advisory firm that targets lower mid-market businesses in the business services, technology, and industrial and manufacturing sectors. The company’s founders have extensive experience, having been involved in mergers and acquisitions (M&A) transactions worth over $1.2 billion.
Though the team at Apex has experience, it is small. The handful of professionals may not be equipped to structure a complex deal. Additionally, they do not offer cross-border services, making them more suitable for regional mergers and acquisitions.
4. Portage M&A Advisory
Portage M&A Advisory specializes in both buyer-side and seller-side M&A services. The Ontario-based firm works with companies in the manufacturing, construction, and professional services sectors.
Though they are competent and offer admirable client service, they admittedly focus on middle-market companies with valuations of between $5 million and $50 million. As such, they may not be able to offer appropriate services to smaller companies.
5. Minerva Valuations
Minerva Valuations is a cross-border advisory firm specializing in business valuations, litigation support, and mid-market M&A. Their team includes accredited appraisers, forensic accountants, and chartered financial analysts, making them a strong choice for complex valuation work.
However, their strength in valuations doesn’t always translate to deal execution. They have a few closed transactions and a heavier emphasis on reports. They may not be the best fit if you’re looking for aggressive deal negotiation or strategic buyer outreach.
How to Choose the Right M&A Advisory Firm
Choosing the right M&A advisory firm can be the difference between a successful deal and one that falls apart midway.
Here are some factors to consider when making your choice:
- Experience: Every M&A deal is unique. That is why you need a firm with an extensive history of closing multiple M&A deals. They will help identify and avoid missteps in the process that a new firm might ignore.
- Specialised Expertise: Pick a firm with experience closing M&A deals in your sector. They understand the ins and outs of your industry and potential dealbreakers.
- Reach: Find a firm with extensive networks and connections that they can leverage to find you the deal you want, especially during a cross-border deal.
- Cultural Fit: Ensure the firm’s values and working style align with those of your business to guarantee a smooth working relationship throughout the process.
- Extent of Services: Choose a firm that is ready to meet all your needs. Whether it’s the complete service from strategic planning to integration planning, or a specific service.
- Fee: Although it is not advisable to hire the cheapest available firm, it is prudent to hire one within your budget and with payment terms that you can fulfill.
Common Challenges in M&A Advisory
Every M&A advisory firm seeks to have a smooth and streamlined process when working to meet its clients’ expectations. However, these six challenges may arise and become problematic:
- Poor Communication: Inadequate communication between the client and firm can result in a misalignment of goals. In addition, poor communication between the buyer and seller can derail the deal.
- Wrong Valuations: Inaccurate valuations could leave the buyer or seller dissatisfied and incentivised to walk away from the deal. For example, it can affect the expected return on investment.
- Integrating Cultures: Combining two distinct work cultures into one can be challenging. As a result, the clash of cultures can cause tension and reduce productivity, especially when merging cross-border companies.
- Retaining Personnel: Companies can lose some employees during a merger due to the uncertainty it causes. Some may leave because they do not want to work under new management or because a merger will affect their compensation, roles, and responsibilities.
- Data Gathering: A lack of transparency can derail the due diligence process. On the other hand, inadequate due diligence can fail to uncover hidden issues that may become liabilities after ratification of the merger.
- Regulatory Delays: Prolonged waits for compliance certifications or lawsuits from oversight authorities can stall, prolong, or derail an M&A deal.
Frequently Asked Questions (FAQs)
Below are answers to several questions about the top M&A advisory firms in the US:
What Is the Average Cost of Hiring an M&A Advisory Firm?
The average cost of hiring an M&A advisory firm depends on several factors, including the size and complexity of the deal.
Initially, you will pay a fixed retainer fee, followed by a success fee upon completion of the contract. The success fee is typically less than 5% of the total deal value.
How Long Does an M&A Advisory Engagement Typically Last?
An M&A advisory engagement typically lasts 6 to 12 months. However, the duration depends on factors such as deal size, complexity, and scope. Delays in regulatory approvals can also prolong the process, sometimes by more than 12 months.
What Metrics Define a Successful M&A Advisory Firm?
The metrics defining a successful M&A firm include positive client testimonials, deal closure rate, client referral rates, and client retention rates. Their post-merger impact on the financial performance of their former clients is also a key metric.
Do M&A Advisory Firms Work with Small Businesses?
Yes, some M&A advisory firms specialize in working exclusively with small businesses operating in the small and mid-market segments of various industries. They typically focus on businesses earning between $1 million and $10 million annually.
Conclusion
Mergers and acquisitions are often strategic decisions that can shape your company’s future. Also, you want to get the best deal possible to maximize your monetary benefits and ensure the firm’s long-term success.
However, this is only possible with the right M&A advisory firm. Partner with a firm that will guide you through strategy drafting, valuation, negotiation, and post-merger integration.
At JS CPA Strategic Solutions, we have nearly a decade of experience helping founders and business owners prepare for mergers and acquisitions. We understand that first-time buyers and sellers face numerous challenges, including tax compliance and planning, as well as concerns about not maximizing their deal.
Book a personalized call today to start planning your exit readiness.