For middle-market aerospace and defense owners considering a sale, one of the first steps is to hire M&A professionals for your deal team. What are “Deal Team Professionals”? As discussed in our March 29, 2022, Deal Note, your M&A Deal Team is comprised of internal managers and external professionals. In this Deal Note, we address the topic of the Professionals on your Deal Team.
Over the past 22 years, Alderman & Company has recommended the following professionals to make up a complete deal team in addition to an M&A banker (also referred to as an M&A Advisor): legal counsel, accountants, tax advisors, estate planners, and wealth managers.
In future Deal Notes™, we will tackle some issues relating to the role of the professionals and how best to manage them. This Deal Note is to introduce the complete professional deal team and the importance of clear communication with all your professionals. The absence of a key professional could result in a knowledge gap which could lead to problems throughout a sale process. In addition to having a complete deal team, setting up clear lines of communication between all deal team members is imperative. Just as is the case in all management situations, optimally managing your deal team will produce better results for you.
Previously we’ve seen a lack of communication between professionals can lead to delays in the sale process, duplicate work (which can lead to paying unnecessary additional professional fees), and a reduction in the sale price due to suboptimal negotiations with the buyer.
Over the past 22 years, we’ve seen that when a client retains experienced M&A professionals well before the start of a sale process (legal counsel, tax advisors, investment bankers, estate planners, and wealth managers) they will see a substantial increase in their wealth.
Have a great day everyone.