Best time to do an M&A transaction
If you’re a buyer, look for the early signs of future growth, new product developments and a mature customer base.
Of course, this is easier said than done. All M&A transactions come with some inherent risk, and even the best economists make bad predictions sometimes. However, most businesses, markets and economies experience regular cycles of growth and decline. With skill (and some luck, too) you can identify times when both a company’s outlook and the broader economy are showing positive signs.
If you’re on the selling end of an M&A transaction, however, the calculation is different. Your optimum time will be when growth is starting to slow.
Boutique M&A companies
Boutique M&A advisers have been around for while, and now they’re more popular than ever.
London’s M&A boutique sector has been around for decades, but recently small scale M&A advisers have been stealing lucrative deals from the big banks that dominated M&A for so long, both in the UK and worldwide.
There are several advantages of using a boutique advisor for your M&A deal. They often provide a high degree of specialisation for particular sectors and industries. Unlike the big banks, they’re not distracted by non-M&A activities like trading and lending. They’re more likely to be seen as free of conflict, and untarnished by recent financial scandals.