What are the Differences Between an M&A Broker and an M&A Advisor?

Performing work tasks in any industry requires experience and skill, which are developed daily. However, improving job skills must also be done with an understanding of the specifics of each industry. In particular, the M&A industry employs a large number of professionals whose jobs have only a few minor differences. For example, it is quite common to confuse the work of consultants and M&A brokers. Find out more about the difference in the activities of these professionals from our article.

 

The difference between brokers and M&A consultants

The field of mergers and acquisitions is quite complex and requires the involvement of a large number of specialists. Not surprisingly, different types of specialists are used for different tasks. Brokers and consultants are the most popular in this industry. However, few can explain the key difference between their work.

Without going into too much detail, M&A brokers work on highly specialized, small-scale projects (usually). Mergers and acquisitions consultants have a broader range of tasks – they provide services to manage complex projects with several simultaneous operations (for example, conducting a merger and sale of part of the least profitable). In addition, it is possible to distinguish the following differences in the work of brokers and consultants on mergers and acquisitions:

  1. Scope of operations. We have already mentioned that brokers work on specific, often small projects, the cost of which is small (relatively, because it depends on the scale of each particular company). Mergers and acquisitions consultants specialize in handling large multi-million dollar projects (if the scale of the company allows it) or deals that are many times larger than usual operations.
  2. Work methods used. Brokers and consultants use different methodologies and strategies to carry out their direct responsibilities. Consultants tend to use more complicated methods to make evaluations and perform tasks than brokers because their activity is not focused on particular companies, but on the business as a whole. M&A brokers use simpler methods for asset and client valuation, which are always tailored to the specifics of the deal.
  3. Client base. Based on the fact that brokers and consultants have different specifics of work, their client base differs as well. Brokers work most often with small businesses or individuals, while the services of consultants are more in demand for large companies whose activities may extend far beyond the scope of such companies. The specifics of the client base also affect the scale of operations and the choice of methods for working with them.

Based on the specifics of what consultants and merger brokers do, they may use virtual data rooms in different ways. But what remains constant is the quality and effectiveness of data room tools that can facilitate unlimited M&A transactions.

 

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