Investment Bankers
Like most successful investment bankers, you have a thriving M&A practice. However, from time to time, you encounter a situation where a merger or acquisition just isn't right for your client.
Perhaps, price is creating too much stress on the deal. Perhaps there are some really significant cultural fit issues. Whatever it is, you can see that the already poor long term success statistics for mergers and acquisitions are likely to be even worse here. You are faced with three choices:
- Plunge ahead and push the deal through.
- Tell the client that he shouldn't go ahead and put your fee at risk.
- Try to find an alternative way for your client to meet his objectives that avoid the issue(s).
It is with this third alternative that the Chesterfield Group might be able to help. Developing and evaluating alternatives to mergers and acquisitions, such as joint ventures, licensing agreements, etc, is at the core of our expertise. Perhaps we can serve both you and your client by helping you avoid the first two alternatives.
Example
You have been working for some time with a client who is interested in acquiring other companies to achieve certain growth objectives. After several successful acquisitions, you bring one to him which is perfect in many ways. However, this one is different, in that its success depends very much on retaining its existing management and corporate culture. You client is very concerned that an acquisition will result in the loss of both and is, therefore, inclined to reject the deal. You can bring in the Chesterfield Group to help you explore alternative structures that would leave the existing management and structure in place, while still bringing the attractive aspects of the target company to your client. This could be done directly with your client as part of your team, or we could work with you behind the scenes to help develop your offerings to your client. Either way, you will retain total control of your client relationship.