Transactions are one of the most complex business processes that take place in a company. They are often treated by the owners as exclusive for large companies. That's not right. The majority of mergers and acquisitions take place in the medium and small enterprise sector. Mergers and acquisitions are becoming more and more popular, and capital transactions give a significant competitive advantage and allow to start expansion into new business areas. At the same time, it is one of the most difficult strategic and financial decisions that await the owner of a given enterprise. This is where transactional consulting comes in. What areas does it cover and why should it be used?

Transaction consulting - concept and areas of activity

Transaction advice is support in the processes of capital transactions, including e.g. purchase or sale of business. From the preparation, through finding the right investor, to the efficient execution of the process. A financial advisor can help you make strategic decisions about the long-term development of your company. Also the companies that are the target of the acquisition can count on the creation of defence strategies and the development of such solutions that can protect the company from a possible hostile takeover.

In a situation where the purpose of a given investment has already some history and functions for a long time in the market, and its balance sheet indicates significant components of fixed current assets or simulated profits - an independent financial analysis, based on generally available data and business plan of the company in which you intend to invest, is at least risky. Transaction consulting covers a wide range of activities, including

• the search for investors,
• investment process management,
• negotiating advice,
• associating business partners with each other,
• advising on mergers and acquisitions,
• due diligence.

Transaction advice - objectives and benefits

Due diligence expertise is extremely important - it covers the entire company in order to show a complete picture of the company. The analysis concerning the activity of the entity is primarily aimed at identifying possible risks related to its functioning. The basic dimension of due diligence is primarily financial and legal analysis. The use of modern tools and quantitative methods allows transaction advisors to model their business, i.e. to assess key issues or areas of concern - both clients and investors can thus better understand the nature of transactions.

Transaction advisory is essential for safe and efficient investment activities both in the case of purchase and sale of business. When taking transactional decisions, one should be sure of all the factors covering this range of activities. Assistance and services provided by a financial advisor, such as due diligence, can save not only time when it will be necessary to return to the analysis of errors made in the transaction process, but also money.