You can trust

Blog

A Brief on Transaction Advisory Service

Businesses go through many transactions to expand and grow. Each Corporate transaction comes with a number of opportunities and risks. When there is so much at stake, then one has to take the right decision at the right time to grab that opportunity. But no one can predict every situation & close the deal in their favor. Sometimes, one might face losses, so it is advisable to take assistance of Transaction Advisors Who have skill and expertise to handle this.

Let’s find out what exactly Transaction Advisory Services is.

A transaction advisory services company can help businesses navigate all kinds of corporate transactions to get the best result. Market Analysis has found that both investors and corporates can manage the risk of transactions with the help of Transaction Advisory Services. It provides crucial advice and guidance in every phase of the transactional cycle.

Some of the relevant practices involved in transactional advisory services are –

Mergers and Acquisitions

The consolidation of businesses is referred to as mergers and acquisitions. In particular, a merger occurs when two companies merge into one entity, whereas an acquisition occurs when one company is purchased outright and taken over by another. M&A transactions frequently generate more value than when each company operates independently. Mergers and acquisitions can occur through the purchase of common shares or assets, or the exchange of shares for shares or assets. When two businesses merge, the resulting company may be worth more and generate more profits. A merger or acquisition that is successful can improve a company’s performance, accelerate growth, create tax benefits, and promote strategic realignment.

Corporate Restructuring

Corporate restructuring strategies are implemented in response to declining profits, change in general market trends, changes in shareholdings, changes in corporate methods, or to increase cash flow. Restructuring is typically carried out to increase a company’s strengths by lowering costs, minimizing inefficiency, and maximizing revenue.  Corporate restructuring may lead to Improvement in business profit, business structure, tax liability reduction, if handled carefully.

Project Financing

Project finance mainly deals with funding projects that are typically infrastructure-heavy, or related to public utilities. During their lifetime, these projects are treated as separate entities from their parent. A project finance venture is entirely an off-balance-sheet item for the parent. As a result, any financing obtained by this entity must be repaid solely from its cash flow and subject to its assets. Even if the venture fails, the parent’s assets cannot be used to repay its subordinate’s liabilities. Some of the primary benefits of project financing are as follows: Effective debt management, risk management, and economies of scale.

What qualities should businesses seek in Transaction Advisory Services?

While selecting a Transaction Advisory Services firm, consider a firm that has people with strong capabilities and a lot of experience with many transactions. Many variations can only be learned through diverse experiences.

A firm must have portfolio of skills including

·   Techno Commercial Due diligence

·   Valuations

·   State and Local tax Implications

·   Financial and Regulatory due diligence

·   Corporate finance and Project Finance

·   Pre and Post-Investment analysis for the Acquirer

·   Transactional accounting

·   Legal and compliance services

Having it all under one roof and coordinated is critical to adding value.

What are the advantages of hiring a firm which provides Transaction Advisory Services?

Businesses contain numerous complexities. A transaction can be very distracting and stressful for a business, especially for the owners. A strong transaction advisory team can take away a lot of the stress and distraction and give one’s peace of mind. People may be unaware of many risks that are inherent in all transactions. Having an experienced Transaction Advisory team will significantly reduce those risks. While making a significant transaction, because there is a lot to be gained or lost, all want the smartest and most skilled people on their side.

 

Mavent Advisors Pvt Ltd. is one of the most trusted and valuable companies which offers the Best Transactional Advisory Services. Contact us at (reachus@maventadvisors.com) or www.maventadvisors.com.

Scroll to Top