Transaction Advisory Services - Everything You Need To Know

What are Transaction Advisory Services?

For any company exploring expansion or sell-out, it's crucial to enter into promising and fruitful joint ventures, mergers or acquisitions. But that is not the only key to a successful inorganic growth. Soft aspects, such as examining and analyzing the risks, tax evaluation, legal and regulatory conditions, social and cultural implications of the company are equally crucial when it comes to closing such deals. Whether these aspects have been analyzed with minute attention, are often responsible for a deal’s success or failure. Specialized professional services for impeccable handling of such soft aspects are grouped under the umbrella of Transaction Advisory Services. Experts offering these services, help their clients identify transactional risks, so that strategic decision making becomes easy for them. TAS services are not just limited to identifying risks for informed decision making, but also extends to actual deal closure and beyond. Let us explore some of the most common services offered under Transaction Advisory Services.

Different Services In Transaction Advisory:

• Merger and Acquisition Advisory services: A Transaction Advisory Service company provides solutions on both Buy and sell-side of a Merger or Acquisition that encompasses all activities, right from deal planning to deal closure. The responsibilities include chalking out an appropriate acquisition strategy, structuring local and international tax issues, identifying potential parties and synergies, assisting in financial models, negotiating a fair value, and measuring possible risks. In the case of a sell-side transaction, an advisor must have a thorough understanding of the implications. The business potential and its unique features need to be projected fittingly to its potential probable buyers. Experts offering service in this branch recognize the importance of positioning the business appropriately to be able to maximize chances for closure of the deal.
• Joint Venture Advisory services: TAS experts also offer their services in identifying a suitable Joint Venture partner, structuring the transaction, negotiating the venture, drafting the agreement, obtaining regulatory approvals, and taking the deal to a successful closure.
• Diligence Services: Business growth implies change and to bring in change, one must be prepared to undertake risk. And, to be able to thrive with risks, one needs to be armed with accurate insights and intelligence. Due diligence process executed by Transaction Advisory Service experts empowers the partners and lenders with a comprehensive summary of the financial, reputational, and organizational risks involved. Before signing a contract, a thorough investigation of these aspects are conducted. A company can hence ensure the authenticity and accuracy of the financial statements, processes, cybersecurity, merger integration, operational issues etc., and thereby minimize the risk of becoming a victim of fraud.