Investment Banker + Attorney = The M&A Dream Team - Why You Need Both

The investment banker and the M&A attorney team are a formidable force driving a deal because every deal has two happening simultaneously – a legal deal led by the M&A attorney and a business deal led by the investment banker. The two leads must work in concert to succeed.

Investment bankers dig deep into a business during the diligence process to craft the confidential information memorandum business story. Spending countless hours learning about the business, they can arm their M&A attorney partner with insights and perspectives that enable them to effectively manage the minutiae of a deal.

Similarly, legal and regulatory elements are critical and necessary constraints to the investment banker’s creativity in crafting transactions. When the M&A attorney shares legal and tax implications early, the investment banker can better prepare to address potential issues and develop effective proposals that conform to legal requirements.

Deals are like piloting a plane. Active coordination and strong communication are imperative. Issues will arise. Identifying concerns early matters. Having experts in M&A deal structure and legal aspects help to ensure issues are identified and dealt with promptly. When in sync, the power duo of investment bankers and M&A attorneys can strongly advocate, negotiate, and create transaction dynamics to counter another team that may be larger and more in tune with business dynamics.

Experienced investment bankers and M&A attorneys also often have extensive networks they can call on to find additional experts, as needed, to keep deals moving forward. In this way, issues are resolved – better solutions are created.

Successful negotiations require connecting with the other side, understanding issues from all involved viewpoints, and developing rapport. By coordinating efforts, the investment banker and M&A attorney can tactically trade-off negotiations to improve client outcomes. This trade-off can look like a detective drama, with the investment banker being the bad cop and the attorney the good cop during one phase, then at the right time, switching roles to achieve the desired result.

Throughout the process, we can’t ignore the client’s emotions. It may be their first deal. Having both key advisors aligned provides reassurance, confidence, and stability for the client and the transaction. Working a deal is easier when the business and legal advisors can manage client expectations cohesively.

All legal issues come down to business points. All business points boil down to risk and value that must be documented. Investment bankers and M&A attorneys working harmoniously are the M&A Dream Team for success.

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Photo: Kenneth Sponsler - stock.adobe.com