No matter which industry you consider – the construction industry or otherwise – one of the largest goals most companies in the industry have is that of business expansion and growth.

 

To keep up with intense industry competition, firms and businesses are always looking for ways to expand, grow, and build their portfolios of businesses to operate and sell. One such way to grow is through mergers and acquisitions.

 

Of course, mergers and acquisitions can often be long, drawn-out, and complicated processes. There is a lot at stake for all parties involved, and there is a need for an effective and strong growth strategy. Without a successful M&A advisor, a merger or acquisition can be very difficult to carry out.

 

In this article, we will discuss what an M&A consultant partnership is and why it is so important for businesses and firms to find the right consulting partners to work with. We will also outline some of the best practices to keep in mind when trying to select an M&A advisor partner to work with. So, if you are a business owner looking to grow and expand, read ahead for the best advice on working with mergers and acquisitions advisory companies.

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What is an M&A Partnership, and Why is it Important to Find the Right Partners?

An M&A partnership is where a formal agreement is made between two companies to either merge or for one company to acquire the other. Both mergers and acquisitions are a form of company growth that are popular in various industries. Some examples of M&A partnerships include manufacturer and vendor partnerships and investor partnerships. Essentially, two or sometimes more businesses that come into an agreement for either a merger or acquisition are known as M&A partners.

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However, there is more to the partnership than just the companies that are involved. Another very important feature of an M&A partnership is the consulting partner. A consulting partner is an advisory firm that helps carry out the merger or acquisition. Sometimes these firms are also known as M&A brokers.

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Not only is it very important to carefully consider which company or business you would like to merge with or acquire, but it is also very important to carefully consider the advisory firm you work with to overlook and carry out the entire M&A process. With the right partners, the entire process of the M&A can be a lot smoother. An experienced and credible consulting partner can help add value to any M&A transaction.

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Remember, when it comes to making a business decision as big as that of a merger or acquisition, it is pertinent to only go forward with the decisions when you have the best advice from the very best consulting partners.

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7 Best Practices for Selecting Your M&A Consultant

As we have discussed above, not only is it very important to carefully consider and choose which company you wish to get into an M&A partnership with, but it is also very important to carefully consider the M&A consulting partner you choose to overlook all transactions.

 

If you are looking to hire an advisory firm to help you carry out M&A transactions or find M&A partners, here are 7 best practices to keep in mind when considering which firm to choose:

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1. Consider an M&A Advisory Firms Experience

Experience and expertise go hand in hand, and the more experience an M&A advisory firm has, the better equipped it will be to lead you through the entire process of mergers and acquisitions. You want to work with a firm that has dealt with mergers and acquisitions for at least five to ten years so that it can handle any kind of obstacles that might turn up during the transactions. A firm with more experience will also likely have a good idea about the industry and can give you valuable input that a less experienced firm might not have. Seeing the successful deals that a firm has helped carry out in the past can help you build confidence in an advisory firm and place more trust in them to help you carry about a successful merger or acquisition.

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2. Choose an M&A Consulting Partner with Credibility

An M&A transaction involves sharing all kinds of private and confidential information with your advisory firm. You have to share important business documentation and financial information with your consulting partners and place your full trust in them. This means that you want to choose a firm with exceptional credibility. Credibility also bleeds into various other facets of the M&A transaction, such as during initial negotiations, information exchanges, due diligence processes, closing the deal, and post-M&A interactions. While newer advisory firms can be and definitely are credible at times, you might find it easier to rely on an older and more experienced firm’s claims of credibility.

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3. Go for an M&A Consulting Partner that is an Industry Specialist

While general experience in mergers and acquisitions can be a huge plus point when choosing an advisory firm to work with, you also want to consider whether that advisory firm has any specific experience in your industry. If you are the owner of an HVAC or plumbing company, for example, and are looking to merge with or acquire another such company, it would be in your best interest to work with a consulting partner that is a specialist in the construction industry M&As, rather than one that has a specialty in financial business M&As. Think about this similarly to how you would not go to a general practitioner if you were in need of heart surgery, no matter how many years the general practitioner had been practicing for. Instead, you would be better off choosing a trained and specialized heart surgeon.

 

If you are looking for an industry specialist advisory firm in the construction industry, consider getting in touch with N3 Business Advisors. N3 Business Advisors is an M&A advisory firm that works with smaller businesses and companies in the construction industry. Whether you are an HVAC or plumbing company, a general contractor, a landscaping company, a woodworking company, and so on, N3 Business Advisors can help you develop strong M&A growth plans and carry out M&A transactions.

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4. Think About What Size Consulting/Advisory Firm Would Be a Better Fit for You

When choosing an M&A advisory firm to work with, you will likely have a large number of firms to choose from. Not all firms are the same, especially when it comes to size, and a larger firm is not always the best choice. Large firms can be great in terms of credibility and market experience, but you don't always know which partners in a firm you will end up working with. As a business owner you may be thinking I will work with the top M&A consulting firms like Deloitte, KPMG or investment banks like Goldman Sachs. However, you need to consider, is your business big enough for their services, is your business going to get the advise and attention that a boutique M&A consulting firm like N3 Business Advisors can provide you. But there is the added benefit of larger firms having more experts on their teams, such as lawyers, accountants, due diligence experts, valuation experts, etc.

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On the other hand, a smaller boutique firm can be a better fit for your M&A transactions too. A boutique firm offers you more one-on-one interaction and attention. You could also likely get to choose exactly which partners from the firm you end up working with. Choosing a boutique firm would mean trading experience for a more hands-on approach, which might be a priority for you.

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5. Look for an M&A Partner that Can Offer You End-to-End Assistance

Some M&A advisory firms are exactly what the name suggests – advisory firms. This means that they can help you come up with a growth plan and help you go over your goals relating to the merger or acquisition, but that is as far as they go with the services they offer you. When working with such a consulting partner firm, you would likely have to deal with various other firms to deal with other aspects of the M&A, such as separate teams of lawyers, due diligence experts, valuation experts, and so on. It might be in your best interest to choose an M&A partner that can offer you end-to-end assistance instead. This means choosing an advisory firm that can help you from the start to the finish of the M&A transaction.

So, scoping out potential businesses to merge with or acquire, dealing with negotiations, carrying out due diligence, going over legal paperwork and frameworks, and closing the deal would all be carried out by the same advisory firm. End-to-end assistance can help make the entire M&A process smoother and cut out the hassle of having to deal with various firms for different aspects of the M&A.

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6. Consider How Many Industry Contacts the M&A Partner Has

Choosing an M&A consulting partner with many industry contacts can offer you a number of benefits. Such a consulting partner would likely have a good idea about which companies are looking to merge or acquire other companies and can help you find potential buyers and sellers to work with. Such a partner could also help you get in touch with venture capital groups and other funding firms that can help you get funding for M&As. Overall, having industry contacts is a huge plus point to keep in mind when choosing a consulting partner to work with. It also naturally follows that a consulting partner that has a specialty in your specific industry or has many years of experience is more likely to have more contacts. At N3 Business Advisors, we regularly speak with owners of construction companies who are looking to sell business or buy business in the HVAC, Plumbing, Landscaping, Roofing or another Contracting trades in Ontario, BC, Alberta and other provinces across Canada.

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7. Set Up Interviews and Meetings Before Making Your Final Decision

And finally, it is important to keep in mind that a consulting partner might seem like the perfect fit on paper but might not be everything you were expecting when you interact with their representatives in person. You will likely have to work very closely with your advisory firm for a long period of time as the M&A transactions are carried out, and you must be able to have a strong and comfortable working relationship with them. As such, it is equally important that you set up interviews and meetings with different advisory firms before you make the final decision on which firm you are going to work with.

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The Bottom Line

Mergers and acquisitions are very important decisions for any company or business and ones that cannot be taken lightly. It cannot be emphasized enough how important it is for any business to work with the right M&A advisory firm in order to have a successful merger or acquisition. When it comes to choosing which M&A consulting partner to work with, remember to keep in mind different considerations, such as the size of the firm, industry specialization, experience and credibility, and other factors we have discussed in this article.

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N3 Business Advisors - Construction Industry Mergers & Acquisition Advisors

If you are looking for a team of experienced and professional business advisors to help you buy or sell a company in the construction industry or any other things relating to mergers and acquisitions, N3 Business Advisors is the best company to help you. Our full spectrum of M&A services include buy side advisory, sell side advisory, valuation advisory and growth consultancy services. Being a firm acutely focused on the businesses operating in the construction industry we bring experience to your business that a generalist business broker or commercial real estate broker selling businesses cannot offer.

 

No matter what goal you are hoping to achieve, be it company growth, merging or acquiring, preparing your business for sale, evaluating your construction company, carrying out due diligence, or meeting any other company goals, we have a qualified and diverse team that can help you out.

 

Team members at N3 Business Advisors has over 20 years of experience working with companies in the construction industry. Our team is made up of lawyers, due diligence experts, valuation experts, business advisors, accounts and financial advisers, and other professionals who can help you achieve your company's goals.

 

If you would like to set up a confidential consultation with N3 Business Advisors, visit our website, or call us at 647 967 4222. N3 Business Advisors is based in Ontario, and our office is at 55 Village Centre Place,​ Suite 200, Mississauga, ON L4Z 1V9.