What Defines Our M&A Advisory Services

June 13, 2019

As measured by the total value of global transactions ($2.72 trillion), 2018 was the second busiest year ever recorded for mergers and acquisitions (M&A). Some 75 percent of industry professionals expect 2019 to be at least as active, particularly as regards middle-market companies.

A more generous corporate tax and regulatory regime, readily available liquidity and the demographic profile of business owners are among the factors that could encourage the trend of M&A activity.

But unfortunately, the ready availability of potential partners, buyers and sellers may lead some owners into less-than-optimal transactions. There’s evidence that a significant proportion of deals are failing to achieve the increased revenue and value projected for them.

In these circumstances, it’s more important than ever to seek expert advice and carry out thorough due diligence before considering any deal.

The Challenges of Modern M&A

Rapid changes in both the global and domestic economies and the increasing variety of debt and equity financing structures available have made the M&A market more complex than ever.

Apart from the traditional sales or acquisitions, modern M&A advisory services now involve advising on a broad range of corporate strategy issues relating to current and future ownership and control and shareholder value.

These changes have encouraged the emergence of a new breed of highly specialized “boutique” advisers who now compete with traditional accountancy firms and investment banks to advise on and execute these transactions.

These firms may have their role in some circumstances. However, in essence, the task and responsibility of our M&A advisory services remains what it’s always been: to create and deliver maximum value for our clients.

The Scott-Macon Approach

During our more than 40-year history, Scott-Macon New York has consulted on major mergers and acquisitions involving organizations such as Visa, Ambac, First American, Land America and the Federal Reserve Bank of New York.

In addition to corporate finance credentials, many of our senior team have direct experience working in a range of commercial and industrial sectors including aerospace, defense, automotive, health care, transportation and retail.

If there’s a single theme that emerges through our wide experience of M&A transactions, it’s that each is unique – and we treat it as such to deliver the maximum value for our clients. Our overriding imperative is to develop as full an understanding as possible of all aspects of your business and devise a plan to implement your key objectives as quickly and efficiently as possible.

We’re aware, however, that in today’s climate you may have many apparently attractive options that are in fact unlikely to deliver real future value.

It is always tempting for advisers to look to initiate transactions and to regard the closing of a deal as a success. But we have no problem in counseling caution when we believe it’s required. We won’t recommend closing on a transaction that we aren’t convinced will deliver the results you seek.

Guided by this overarching philosophy, we are able to offer a comprehensive suite of merger and acquisition services.

Our M&A Advisory Services

The Planning Stage

With the wide variety of corporate structures and funding options now available, preparing a comprehensive project plan is an essential first step.

Whether you’re considering the sale of all or part of your business or the acquisition of a new undertaking, at Scott-Macon we like to conduct a series of initial meetings with the board, senior executives and major shareholders. This allows us to get as full an understanding as possible of your company’s structure, operations and philosophy.

We’ll also want to explore your motivation for the proposed transaction and pin down exactly how you are hoping to realize value through it. These initial discussions are also the forum in which we present some of the options available and discuss their implications for your business.

At the conclusion of this stage, we develop and discuss with you a set of criteria to apply in assessing potential businesses for purchase or to prepare detailed plans for the sale of the whole or a part of your business.

Selling Your Business

The core of our approach to the sale of a business is to obtain maximum value for the owners. Our experience has equipped us with a number of different strategies for achieving this.

When you’re ready to proceed, our specialist team will assist with preparing a comprehensive valuation, conducting due diligence and obtaining necessary fairness opinions.

Business Acquisitions

Apart from identifying suitable targets for purchase, the most important key to successful acquisitions is cost-effective funding.

Debt and equity financing is one of our core specialties, and we work closely with you to assess the many options now available and to put in place the most efficient capital structure for the future of your enlarged business.

Of course, our service also includes a thorough assessment and due diligence review of all potential acquisitions.

Other Transactions

In today’s world, “mergers and acquisitions” means more than just sale or purchase, and we also have extensive experience of advising on such arrangements as joint ventures, stock buybacks, the taking of public companies into private control and the recapitalization of businesses through new debt or equity financing arrangements.

Our Professional Team

Operating since 1973, Scott-Macon New York is one of America’s oldest independent investment banks. Our professional experts have unrivaled experience of assisting middle market and other firms with corporate finance issues of all kinds.

In addition to corporate finance credentials, many of our senior team have direct experience working in a range of commercial and industrial sectors including aerospace, defense, automotive, health care, transportation and retail.

To schedule an initial exploratory discussion of your M&A advisory goals and how we can help you achieve you them, contact us online, or call (212) 755-8200.