Why Should Investment Bankers
Hire PMI Advisors?
Get More Clients
Let us help make your deals successful.
-- True Story --
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One of my previous companies, Facility Relocations, Inc. (FRI), was very successful in providing "office move management services" as companies moved and consolidated their offices around Atlanta. FRI partnered with Coldwell Banker Commercial (CBC) who rolled in a range of FRI’s services as part of CBC's “package” when leasing office space to tenants.
In essence, CBC had a competitive advantage by offering a solution to not only find office space but also to ease their client’s transition into the new location. Their clients really liked this enhanced service. As a result of this partnership, we collectively "hit it out of the ballpark". CBC closed a lot of deals, and FRI got a lot of work.
Likewise, sell-side investment bankers may have a competitive advantage in endorsing our services to help assure success after deal-closing.
Investment Bankers: Get more clients - (See True Story)
- Studies have proven that over 70% of M&A deals fail to meet expectations with inadequate merger integration being a major culprit.
- When deals fail, sellers don't receive future payments and investment bankers don't receive their commissions on Earn-Out payments.
- Our Project:100 Days™ merger integration methodology, starting at $50k, helps make deals successful, so future payments are actually realized.
- View our integration management consulting services as similar to legal and accounting fees paid at closing.
- Our services are a form of "M&A Deal Insurance" to help ensure a successful outcome.
By offering to pay for a portion of our services ($25k suggested), investment bankers demonstrate to their prospects that, in addition to selling their businesses, they will also help ensure that their deals are successful and that they receive their future payments.
Sellers: There are no "all cash" deals.
Depending on the M&A deal terms, contingent payments, such as Earn-Outs, Seller notes, Claw-Backs, Escrows, Buyer Stock, etc., may be part of the Sellers' proceeds. If Sellers are actively involved in the post merger integration process during the critical first 100 days, they will be able to ensure the likelihood of receiving future payments, as well as promote their teams' involvement with the acquiring company after deal-closing.
- Earn-Outs - For Sellers, the best chance at influencing the earn-out occurs if they take a strong role in merger integration, ensuring the retention of key Seller employees, and remain involved with the company to have a direct impact on the earn-out metrics.
- Seller Notes - Here again, it is in the Seller’s best interests to provide as much influence as possible going forward so that the Buyer will succeed and future note payments will be received.
- Buyer Stock - Being involved in the merger integration provides the Seller the opportunity to influence the success of the company and the corresponding value of the stock.
- Escrows - By the Seller being involved in the post merger integration process via our services, the Seller is able to be more aware of issues concerning representations and warranties that may arise.