Mergers and Acquisitions (M&A) Advisory
Kroll’s investment banking practice has extensive experience in M&A deal strategy and structuring, capital raising, transaction advisory services and financial sponsor coverage. Duff & Phelps acquired Kroll in 2018 and unified under the Kroll brand in 2020.Contact us
Our thorough understanding of the industry, comprehensive M&A services and deep experience across every facet of the deal lifecycle enables our clients to manage transaction risk, create long-term value and make timely, smarter decisions.
Our capabilities span sell-side and buy-side M&A advisory, M&A due diligence, fairness and solvency opinions, secondary market advisory services, valuation, compliance, disputes, tax, restructuring and cybersecurity, amongst others.
Leading Middle-Market Investment Banking and M&A Advisor
Our team advises public corporations, private equity investors, financial sponsors, family-owned businesses, and other private companies in middle-market sell-side and buy-side M&A transactions globally, with regional teams situated in U.S., Canada, UK, Germany, France, China, and Brazil. We enable clients to navigate the complexity of each transaction with confidence to get the deal done at the right price, from decision support at origination to deal closing and beyond.
Clients choose us for our:
- Senior staff engagement throughout every M&A transaction
- We have provided over 2,376 fairness and solvency opinions with over $7 trillion in deal value since 2005
- Global reach, including dedicated M&A professionals in the U.S., Canada, UK, Germany, France, China, Brazil and India
- Dedicated industry expertise across seven sectors
- Financial Sponsor coverage and access to the global private equity community
- Breadth of in-house corporate finance and financial M&A advisory services, which significantly enhance M&A processes and outcomes for our clients
Frequently Asked Questions
When should a business consider an M&A deal?
This depends on several factors. Competition and growth are among some of the most common drivers for companies. A company facing competition must cut costs and innovate at the same time. Companies grow by acquiring new product lines, intellectual property, human capital and customer bases and also look for synergies. By combining business activities, overall performance efficiency tends to increase and across-the-board costs tend to drop as each company leverages off of the other company's strengths.
How is a deal typically structured?
The best deal structures invariably involve detailed workflows: Mapping out the process in advance is the best way to ensure that the transaction achieves the goals inherent in the company’s M&A strategy while ensuring that deal participants have an insight on how the deal will play out.
A Suggested Step-By-Step Guide on the M&A Deal-Making Process:
Develop a Master Plan
Divide the M&A process into short-duration projects that sharpen the focus of the deal participants. Shorter-duration projects increase the chances of success and maintain momentum.
The Pre-Deal Phase
Develop a business strategy that defines your company’s overall objectives, capability gaps, priorities and potential areas in which M&A can add value.
Putting Together a Deal Team
Put together an effective deal team with complementary skill sets to have diverse viewpoints.
Integration is often thought of as a post-deal process, but it should form part of initial due diligence. Asset integration forms the critical infrastructure of any M&A process.
What are some valuation techniques used during an M&A?
Both companies involved on either side of an M&A deal will value the target company differently. The seller will value the company at the highest price possible, while the buyer will attempt to buy it for the lowest price. A company can be valued by studying comparable companies (comparables analysis) in an industry by relying on a sample of the following metrics:
- Price-to-Earnings Ratio (P/E Ratio)
- Enterprise-Value-to-Sales Ratio (EV/Sales)
- Discounted Cash Flow (DCF)
- Replacement Cost
How are mergers typically structured?
Mergers can be structured in a variety of ways, based on the relationship between the two companies involved in the deal:
- Horizontal merger
- Vertical merger
- Congeneric mergers
- Market-extension merger
- Product-extension merger
Mergers may also be distinguished by following two financing methods:
This kind of merger occurs when one company purchases another company. The purchase is made with cash, stock (equity), assumption of debt, or a combination of some or all of the three.
With this merger, a brand new company is formed and both companies are bought and combined under the new entity.
What are some questions clients typically come to us with?
- How will you find the value of my company?
- Can you assess the strategic fit of my business in the market now?
- Can you advise me if it is the right time to sell my business?
- Can you manage the M&A deal process from end-to-end?
- What do I need to know about the buy-side and sell-side process?
- Do you have expertise specific to my industry?
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