Merger and Acquisition Advisory Firm (M&A Advisory Firm)

Published: | Updated: June 7, 2017

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.
Firms that provide M&A advisory services are typically classified as bulge bracket investment banks, a middle market firm and a business broker. The differences in these firms are:

  • 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.
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