Advising the Buyer

What role(s) is given to the IBanker (IB) by a potential buyer? Both strategic and financial buyers use buyside advisors, at least on occasion. The most compelling reasons are discussed herein.

Strategic Buyer

1. To source specific types of potential sellers.
2. For certain targets, to value the business and IP.
3. To utilize industry contacts or in place relationships with key executives of a seller.
4. As a sounding board on tactics that may appeal to a particular seller.
5. To isolate key industry or market niche executives who might assist with the transaction and/or post transaction operations.
6. To recommend consultants and professionals with prior expertise with similar sellers.

Financial Buyer

1. Assess how the seller target fits within the buyer platform(s).
2. A second opinion on seller industry trends, as well as value drivers.
3. Deal terms negotiated for the last, similar IB deal.
4. Identification of likely, viable add-ons within seller niche.
5. To isolate key industry or market niche executives who might assist with the transaction and/or post transaction operations.
6. To recommend consultants and professionals with prior expertise with similar sellers.