| Topic Name: |
M&A in Consulting Firms |
| Message Name: |
banks vs. consulting... |
| Date Posted: |
03/22/2001 |
| In Reply To: |
Can someone please tell me why consulting firms are involved in M&A? What do they specialize in? How's the deal flow? Which consulting firms are big in M&A?
Please advise! |
| Message: |
Banks are contingency based... and therefore, not at all objective about whether a deal is actually a good idea. Consulting firms lend that needed objectivity to the acquiring party.
Consulting firms who do this type of work tend to have huge, much more detailed, arguably academic valuation models. Banks don't waste their time on the valuation... they look at transactions to get an approximate negotiation range and then build detailed models around how to actually get the money to fund the deal, rather than what it's worth.
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