Three Types of Corporate Advisory Services
You’re a sharp businessperson. You’re good at your work. But you’re running into a challenge you’ve never faced before, and you don’t know for sure how to move forward. What is this challenge? Are you running a business startup? Are you in charge of buying a business? Is your company working on a major and costly strategic decision?
Even the smartest businesspeople need advice; in fact, the smartest of them all seek advice more than others do, just like star athletes retain coaches and trainers. Whatever challenge you’re facing, corporate advisory services can give you the expert research and analyses you need to move beyond this problem.
Big investment banks charge a lot of money to give advice, but some firms charge much smaller fees. With them, you can get the value of the advice you need, take advantage of the opportunity you’re working on as soon as possible, and ideally make much more money than you spend on advice.
Examples of Corporate Advisory Services
Here are three areas that a corporate advisory service can help you with. There are many others, but this can help you start thinking about what you could do with great advisors.
Advice for Startups
Businesses in the startup phase don’t always have all the internal services and roles they need. An outside advisory service can provide sales forecasts, strategic planning, accounting, debt restructuring, and much more.
Outsourcing these services during the startup phase can even be an advantage, because an outside advisory firm will know the current best practices for each service. They can help your company start using the best types of systems you can stick with for many years.
A Fairness Opinion on a Corporate Sale
It can be difficult to decide whether the sale of a company is fair for all stakeholders. Standards of fairness in this area are inconsistent. However, some challenges to fairness do go to court, so it’s best to protect your company with an objective fairness opinion from an advisory service.
Seasoned professionals can create an analysis of whether the sale of a company is fair both to the selling shareholders and the common stockholders, along with managers of the selling company.
Valuation of Merging Private Companies
Many times, the management of two merging companies are not able to agree how to value each company relative to the other, so they’re unable to agree on how much equity each firm is entitled to.
An advisory service firm can create independent, objective value reports for such companies. Each company can study the report about itself first and then trade reports to study the other, which helps move negotiations forward to a resolution.
The Advice of Seasoned Professionals
Chosse a company that has extensive experience providing corporate advisory services so you can be successful as you approach decisions regarding:
- Spin-offs and other divestitures
- Other major transactions
You’ll need expert valuations, fairness opinions, solvency reports, and other types of advice to complete transactions safely and profitably. Whatever type of difficult decision you and your company are facing, get strategic advisory services can help you clearly understand the problem and see viable solutions.