Merger and Acquisition Advisory Firm (M&A Advisory Firm)
Definition - What does Merger and Acquisition Advisory Firm (M&A Advisory Firm) mean?
A merger and acquisition (M&A) advisory firm provides advice on corporate mergers, acquisitions and divestitures as well as debt and equity financing.
M&A advisory firms are different from an investment bank in the fact that an investment bank, in addition to performing an M&A advisory role, may also:
- Advise with the issuance and placement of stock;
- Act as an underwriter or agent when corporations are issuing securities;
- Maintain markets for previously issued securities; and
- Offer advisory services to investors.
Divestopedia explains Merger and Acquisition Advisory Firm (M&A Advisory Firm)
M&A advisory firms try to match businesses for sale with prospective buyers. To do this, an M&A advisory firm’s services typically include:
- Business valuation;
- Preparation of a pitchbook or confidential information memorandum;
- Identification of prospective buyers and discussions with these parties;
- Providing negotiation of purchase and sale agreement and other deal-related agreements;
- Assisting with due diligence; and
- Resolving transaction issues throughout the process.
- Business brokers work with smaller clients and provide representation on transaction with values typically less than $5 million.
- Middle market firms focus on transactions of companies with an enterprise value between $5 million and $75 million.
- Bulge bracket investment banks normally work on transactions greater than $50 million unless there are reasons to work on smaller sized transactions such as a roll-up strategy for a client.