Mergers and Acquisitions Advisory

When advising clients, investment banks evaluate both companies involved in the merger. They will evaluate their client as well as the their merger partner, exploring the strength and weaknesses of each company, and determine a fair valuation for both. Based on their analysis of both companies, they will then also seek to determine the possible benefits from this merger, such as economies of scale, the strengthening of market positions, or the ability to enter new markets. Another aspect to consider in their advice is the reaction of shareholders and other market participants, including regulators and other stakeholders. Shareholders or private owners of a target company might be reluctant to agree to a merger or alternatively might be very willing to dispose of their holdings.