M&A, also known as merger and acquisition, is one of the most complicated and costly transactions a company can make. If you’re the buying company, this is an expensive investment that could backfire if done incorrectly. Luckily, many M&A advisory firms in Singapore are willing to help both parties in the business transaction. But what is M&A advisory, and do you need it for your merger and acquisition? Here’s a quick guide that tackles everything you need to know about M&A advisory services.

What is M&A advisory in Singapore?

M&A advisory in Singapore is the third party to help a business transaction involving the buying, selling, and trading of businesses. An M&A advisory firm could represent a buyer or seller to ensure a smooth and fair transaction without legal complications. M&A advisory services usually give their clients advice. They also conduct business research about the client’s market.

What do M&A advisory services do?

The main job of M&A advisory firms in Singapore is to advise the buy-side and sell-side of a merger and acquisition. Once both parties have agreed on a business transaction, one of the parties will contact an M&A advisory firm for said assistance. M&A advisory services will advise on company values, deal structures, and more for the entire transaction duration.

Why do you need M&A advisory services?

  • Their expertise in merging and acquisition is the most valuable service they can offer you. M&A is complicated, challenging, and costly. While other business people have limited knowledge of M&A, those in advisory firms have trained in this aspect. Thus, hiring M&A advisory services can help guarantee a beneficial transaction.
  • Another central aspect of their job is market research. M&A advisory firms in Singapore can research the market your company focuses on and develop optimising strategies for your business to start climbing the ranks.
  • M&A advisory services have access to an extensive array of connections. They can keep the contact information of every client they’ve worked with, so if you’d like to connect with a company for a transaction idea, these firms can provide you with information.

How does a merger process with M&A advisory services play out?

Step 1: 

Once two businesses have agreed on a transaction, one hires an M&A advisory firm in Singapore. An advisor from the firm meets with the two parties and establishes this transaction’s terms.

Step 2: 

Negotiate agreements and ensure that the transaction fulfils all legal requirements. Prepare legal documentation about the results of these negotiations.

Step 3: 

Both parties meet to approve the transaction, while M&A advisory services provide a Fairness Opinion, attesting to the equality of the transaction.

Step 4: 

Both parties hold shareholder meetings to approve the transaction officially.

CLA TS is an accounting and consulting firm in Singapore that handles risk advisory, sustainability reporting in Singapore and more. As an independent member of CLA, they have advised several companies before and now possess an extensive list of connections. For more information about their services, visit their website.