A key benefit of both the buyer and the seller having their own M&A Advisor (also called Corporate Advisor) is the extra degree of flexibility it provides in resolving differences in the positions between the buyer and seller.
For instance, if the buyer and seller come to an impasse, then the advisors would typically discuss between themselves hypothetical solutions that might provide a way forward. These discussions are conducted on the understanding that they are exploratory and do not commit either buyer or seller to the solutions discussed. This then enables the M&A Advisors to be free in proposing solutions and then assessing the pros and cons of each without the fear that they are committing their client in any way.
These hypothetical discussions also enable the Advisors to explore their respective client’s responses to the proposed hypothetical solutions and provide a tangible way of the buyer and seller providing detailed feedback on what they do and do not like. This feedback thereby guides the shaping and reshaping of the solutions until an agreed solution is reached.
An M&A Advisor will usually not make decisions on behalf of their client, but will negotiate to achieve a result within the authorisations or parameters (e.g. price or terms) provided by their client.
Grant Kirby, Director, Cambian Corporate Advisory Pty Ltd