The number of advisers involved in a corporate finance deal can either be beneficial or detrimental, depending on the circumstances. When carrying out any sort of buying or selling business transaction, the people around the table, who are neither the vendor nor the acquirer, can sometimes outnumber those two critical persons in a ratio of 10 to 1.
Seek Trustworthy Advisers
It is important to have solid corporate finance advisers who you can trust to have your best interests at heart. However, the question is: who, and how many? Unfortunately, some advisers tend to perform as though they are competent while not adding anything of real substance and charging exorbitant fees for their services. In an effort to combat this, you should consider:
- Who do you want next to you around that deal table?
- What is their job?
- How will you measure their performance?
- How will you know they have your best interests at heart?
Don’t let your own corporate finance advisers be the cause of any delays due to the postponement of deal completion that might come from their side. Be prompt and as honest as you can be, and ensure that your team does the same.
Factors of Consideration
To mitigate challenging advisers, consider assembling your own dream team by appointing professionals who have worked together before. Everyone has their own ways of working, and it is better to utilise reliable methods that have been refined and have previously achieved effective results.
If this is not possible and you have a favoured accountant, lawyer and corporate financier who have never crossed paths, then it may be wise to call a group meeting where you can lay out the conditions of what you expect in terms of behaviour.
To streamline the process even further, consider agreeing on fixed fees. When advisers work to a fixed fee schedule, things can move more quickly and efficiently.
Additionally, be very clear on your own criteria for a deal and who you want the main point of contact to be —this is usually the corporate financier. Choosing a primary point of contact is very important, as the worst thing that can happen is conflicting messages from your team due to confused communication.
Finally, and perhaps most importantly, do not tolerate posturing from individuals who wish to gain a competitive advantage over one another. While seasoned professional advisers are honest, open and like to get things actioned quickly, this is not the same approach taken by every individual in the same field, so remain aware of this and take pre-emptive action.
To Conclude
If you value integrity, honesty and responsive corporate finance advisers, fds can offer you the professional assistance you are looking for in a number of areas. To learn more about our corporate finance services, please click here.