Hire best-in-class M&A Negotiations consultants & experts

Our invite-only community connects the world’s top
M&A Negotiations specialists to projects that need execution, now.

What are M&A negotiations and how Fintalent can help you hire the best M&A Negotiation Consultants

An M&A negotiation is a negotiation that takes place when one company acquires another, when merger negotiations take place between two companies. It is more elaborate than an acquisition by approaching each other with a mutually negotiated set of terms and conditions that are acceptable to both parties.

Fintalent, the hiring and collaboration platform for tier-1 M&A and Strategy consultants is the go – to platform for hiring M&A negotiations consultants. Fintalent’s platform offers hiring managers the opportunity to select M&A experts from a large pool of pre-vouched freelance M&A experts from across the world willing and available to take on new projects.

M&A is an acronym for Mergers and Acquisitions. It essentially means that two corporations are merging together in order to make one bigger entity with more power or resources than either one independently had on their own. The major players involved in the process are usually the company being acquired and this company’s shareholders which could be individuals, mutual funds, corporation, or even other businesses.

The company looking to buy the other company through M&A negotiations is typically referred to as the acquirer. For example, a company like Daimler Chrysler may want to buy up Chrysler. The biggest hurdle when it comes to M&A negotiations is deciding on a fair price for each individual shareholder in the corporation being acquired . When these two corporations are trying to hammer out a deal, they are usually run by their board of directors. While they will be on opposite sides of the table, this doesn’t mean that they cannot come up with some sort of common ground; in fact, it’s something that M&A negotiations are all about.

Misconceptions about M&A negotiations

The biggest misconception people have about M&A negotiations is the idea that these corporations are the only ones involved in the process. This couldn’t be further from the truth. In fact, there are individual shareholders involved, who may not want to sell out at all. They may feel that their company is set to do very well and don’t want to sell it off as a result of an acquisition . There are also bankers who help facilitate these deals and stockholders who also play a role in mediating between acquirer and acquiree during M&A negotiations.

Another aspect of M&A negotiations is to find out if there are any outstanding debts or obligations before any merger can take place. The acquirer will want to be sure that any previous debts that the company has will not be tied to them when the final transaction goes through. To get around this, they may agree to pay off some of these debts if they are shown proof of them. This can be a very important part of M&A negotiations and can take some time to resolve depending on how much money is involved in being paid that debt off .

After all these details are finalized, the actual merger takes place, which includes transferring assets from one company to another.

Basic Types of M&A Agreements

Various types of M&A agreements can be reached through M&A negotiations. Some of the most prominent agreements include:

LBO: A LBO, or leveraged buyout, is a form of an M&A agreement whereby an acquirer forms a special type of partnership with a target company known as a master limited partnership in order to acquire the target company. The special purpose entity would invest in the target firm’s assets in order to finance the acquisition, which would be done through a use of debt. The special purpose entity can then sell these assets off piece by piece after the acquisition is completed. The LBO was popularized by Henry Kravis and his associates from their efforts with RJR Nabisco in 1988.

Hedge Acquisition: A hedge acquisition is also known as a takeover acquisition, which is where a company acquires another company for the purpose of securing management control rather than for the purpose of acquiring just enough assets to gain an absolute majority stake.

Proxy contest: One party in an M&A transaction might try to manipulate the outcome by not disclosing pertinent information about their target or trying to influence other shareholders in such a way as to cause them not to cast their votes with it. This is called a proxy contest.
Where multiple companies are involved in an M&A transaction, traditionally there is no mandatory requirement that each party must reveal all its financial information but this has changed. Companies are required to present their financials in a standard table format with certain items highlighted. This simplifies the act of analyzing the financials for the investing community, which is very helpful for an upcoming M&A negotiation.

Partial roll up: A partial roll up is a type of M&A agreement where a target firm that has been acquired by one party is merged into another target firm but is not on equal footing in that second corporation. This can be seen in large corporations where one company acquires as a subsidiary another, as well as purchases stocks or bonds from other companies while another parent company also owns other companies and/or subsidiaries. In a case where each shareholder is on equal footing, there is no need for FASB guidance on this type of situation.

Sometimes when companies go through M&A negotiations it may be necessary for investors to sell their shares in their target firm. This might be due to certain reasons such as internal corporate restructuring, an acquisition of another company, or a merger with another company. It also can happen when a firm decides that its shares are down-valued and sold off at a much lower price than they were purchased at. Sometimes this can occur while other companies in the same industry are offering their shares at much higher prices from where they have been purchased from. Often times this causes investor issues with that company due to the fact that they feel their shares were sold off too cheap and want compensation for this.

The trigger for any M&A negotiation is to understand both parties’ motivations and goals and then to proceed from there. By understanding both parties’ core values, you can gain critical strategic insights that can be used when developing tactics for your negotiation strategy. This is the only way to achieve your desired outcome through effective negotiations. An M&A agreement negotiates issues such as payment structure, price per shares, trading schedule, and engagement of intermediaries like banks or brokers. These issues can be similar to the other types of agreements such as an employment contract or a business agreement. Therefore, there are certain similarities between all four of the above-listed categories, but some differences do exist.

Different companies have different needs, and all companies should consider their specific situation and goals before executing any type of M&A agreement. This can be done by reviewing your competitors’ agreements for insights as well as analyzing what investors and analysts have to say about your industry as well.

Motivations for M&A Negotiations

Here are a few factors that motivate companies to engage in M&A negotiations.

Free cash flow or FCF— Free cash flow is the amount of cash generated by a company that is free to use to fund future growth projects. If a company plans on buying another firm in which it can access its free cash flow, it is known as the ‘cash takeover.’ Free cash flow is not something that you can get just by looking at the balance sheet. Free Cash Flow also includes certain things such as certain assets like property and intangible assets like goodwill and patents, as well as net operating income. This measurement includes all sources of non-cash income and expenses, but it is not necessarily equal to net income.

The price to book ratio is defined as the price of the stock compared to the book value of equity in a company. If this ratio is less than 0.5, then it signals that the stock is undervalued.

The Price-to-earnings or P/E ratio compares a company’s share price to its annual earnings per share. If a company has a high P/E, this would mean that it is currently being priced at a premium relative to its peers and also relative to its own history. For example, if there are companies that have similar earnings characteristics as A Company but they have higher market capitalization, then we would say that A Company’s P/E is higher than theirs. If an investor or company is looking to buy a company with a lower P/E, then they will be looking to buy the stock at a lower price.

The price-to-sales ratio is used to examine the relationship between how much investors are willing to pay for each dollar of sales generated by the company. If a company has a high market capitalization relative to its annual sales, then it is being priced at a premium. For example, if there are companies that have similar sales as B Company but they have less market capitalization, then we would say that B Company’s P/S ratio is higher than theirs. If an investor or company is looking to buy a company with a lower P/S ratio, then they will be looking to buy the stock at a lower price.

Debt-to-capitalization ratio refers to the percentage of debt owed by the company in relation to the total capitalization of all its assets. This ratio measures how much leverage a firm has when compared to its assets. A high debt-to-capitalization can be risky for a firm since it means that if something were to go wrong, there would not be enough capital on hand to cover it.

The Debt-to-Equity Ratio examines the proportion of outstanding debt in relation to common shareholders’ equity. This ratio is often used to assess the risk in a company’s capital structure compared to other firms. As companies reach the ideal situation of being debt-free, their ratios tend to increase.

The Market-to-Book value is a measure of the value of securities held by a company compared to the book value of its total assets. The market value of a firm is defined by its market capitalization reflecting both equity and debt securities issued by the firm. This ratio is meant to indicate how much investors are willing to pay for each dollar that they would expect from assets owned by the company. A high market-to-book ratio means that investors are willing to pay more than the actual assets’ worth.

The Enterprise Value (EV) is the total value of a firm. EV includes the market value of equity, plus debt, and minority interest in subsidiaries. It is also equal to the sum of all capital invested in the enterprise. EV can be an important tool used by investors and analysts to assess a company’s total value. We like to see companies with lower EV since it indicates that the company could be undervalued on the market.

In most cases, shareholders approve management-sponsored proposals by majority vote without exiting from the stock. In some instances a majority vote is required only from those shareholders who are present at the meeting or represented by proxy votes. However, the management-sponsored proposals must always represent a majority of the votes cast by shareholders present at the meeting or represented by proxy votes.

The use of a poison pill is an effective defense strategy against hostile takeovers. Because it is mostly anti-takeover, shareholders do not usually vote for poison pills. In some cases, even if a firm goes through with a hostile takeover, many poison pills will destroy themselves after 2 years unless renewed by the board. This makes it more difficult for another company to acquire their target in the future. Also, if enough shareholders are unhappy with this pill they can opt to sell their shares in the company and make it much harder for that company to acquire that target in the near future.

Why you need Fintalent’s freelance M&A Negotiations Consultants

M&A negotiations are extremely complex as you can see by this brief overview and it takes a lot for two companies to come together in order to form one bigger entity.Key figures involved in setting up the deal need to skilled in the art of negotiations in order to iron out all grey areas ahead of time and ensure a seamless integration of companies involved in the M&A.

Fintalent, has available for hire experienced and qualified experts that tick all the boxes to conveniently handle M&A deals of different sizes. Fintalent has a selection of qualified M&A Negotiations consultants from across the world available for hire on the platform.

Hire related Fintalents

Hire the best M&A Negotiations specialists in 2,900+ industries

Fintalent is the invite-only community for top-tier M&A consultants and Strategy talent. Hire global M&A Negotiations consultants with extensive experience in over 2,900 industries. Our platform allows you to build your team of independent M&A Negotiations specialists in 48 hours. Welcome to the future of Mergers & Acquisitions!

Why should you hire M&A Negotiations experts with Fintalent?

Trusted Network

Every Fintalent is exclusively invited and vetted.

Ready in 48h​​​

Hire efficiently. Your M&A team is ready in 2 days or less.​​​​

Specialized Skills​

Fintalents are best-in-class - and specialized in 2,900+ industries.​

Code of Ethics​​

We guarantee highest integrity and ethical principles.​​​

Selected Clients and Partners

Frequently asked questions

Most frequent questions and answers

What clients usually engage your M&A Negotiations Consultants?

We work with clients from all over the world. Our clients range from enterprise and corporate clients to companies that are backed by Private Equity or Venture Capital funds. Furthermore, we work directly with Family Offices, Private Equity firms, and Asset Managers. Most of our enterprise clients have dedicated Corporate Development, M&A, and Strategy divisions which are utilizing our pool of M&A Negotiations talent to add on-demand and flexible resources, expertise, or staff to their in-house team.

How is Fintalent different?

Fintalent is not a staffing agency. We are a community of best-in-class M&A Negotiations professionals, highly specialized within their domains. We have streamlined the process of engaging the best M&A Negotiations talent and are able to provide clients with M&A Negotiations professionals within 48 hours of first engaging them. We believe that our platform provides more value for Corporates, Ventures, Private Equity and Venture Capital firms, and Family Offices.

Our Hiring Process – What do ‘Community-Approach’ and ‘Invite-to-Apply’ mean?

‘Invite-to-Apply’ is the process by which we shortlist candidates for the majority of projects on our platform. Often, due to the confidential nature of our clients’ projects, we do not release projects to our whole platform but using the matching technology and expertise of our internal team we select candidates who are the best fit for our clients’ needs. This approach also ensures engagement with our community of professionals on the Fintalent platform, and is a benefit both to our clients and independent professionals, as our freelancers have direct access to the roles best suited to their skills and are more likely to take an interest in a project if they have been sought out directly. In addition, if a member of our community is unavailable for a project but knows someone whose skill set perfectly fits the brief, they are able to invite them to apply for the role, utilizing the personal networks of each talent on our platform.

Which skills and expertise do your Fintalents have?

The Fintalents are hand-picked and vetted M&A Negotiations professionals, speak over 55 languages, and have professional experience in all geographical markets. Our M&A Negotiations consultants’ experience ranges from 3+ years as analysts at top investment banks and Strategy consultancies, to later career C-level executives. The average working experience is 6.9 years and 80% of all Fintalents range from 3-12 years into their careers.

Our M&A Negotiations consultants have experience in leading firms as well as interfacing with clients and wider corporate structures and management. What makes our M&A Negotiations talent pool stand out is the fact that they have technical backgrounds in over 2,900 industries.

How does the screening and onboarding of your M&A Negotiations talent work?

Fintalent.io is an invite-only platform and we believe in the power of referrals and a closed-loop community. Members of our community are able to invite a small number of professionals onto the platform. In addition, our team actively scouts for the best talent who have experience in investment banking or have worked at a global top management consultancy. All of our community-referred talent and scouted talent are subject to a rigorous screening process. As such, over the last 18 months totaling more than 750 hours of onboarding calls, of which only 40% have received an invite-link after the call.

What happens if I am not satisfied with my M&A Negotiations consultant’s work?

During your initial engagement with a member of our Fintalent talent pool with no risk. If you are not satisfied with the quality of your hire for any reason then we are able to find a replacement at short notice. There is no minimum commitment per project, but generally projects last at least 5 days and can last 12+ months.

Interested in our invite-only community of tier-1 M&A Negotiations experts?

Cookie settings
Cookies are used on this website. These are needed for the operation of the website or help us to improve the website.
Allow all cookies
Save selection
Individual settings
Individual settings
This is an overview of all cookies used on the website. You have the option to make individual cookie settings. Give your consent to individual cookies or entire groups. Essential cookies cannot be disabled.
Save
Cancel
Essential (2)
Essential cookies are needed for the basic functionality of the website.
Show cookies