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Undertaking a corporate transaction is by no means a simple exercise, be it a corporate acquisition, raising funding from a bank, private or institutional investor or indeed realising the value inherent in your business through a disposal. All types of transactions have their own challenges and pitfalls to avoid along the way as you seek to extract the most value from it.

A good corporate finance adviser will add value throughout the process, bringing their experience, expertise and energy to the table allowing you to concentrate on your part in the process, notably the core business.

An experienced adviser will review the company / opportunity and be able to quickly identify any areas that need attention. They need to be involved from the outset until the transaction is complete and act as project managers to make sure everything is running smoothly, including advising management on any due diligence and tax issues, arranging meetings with potential buyers / funders and preparing any presentations.

When choosing a financial adviser research them thoroughly, and although there may be many things on your checklist, consider the 4 Cs: Credentials, Contacts, Confidentiality and finally Chemistry.

Credentials

Perhaps the most important factor to consider... can they do the job? The best indicator is clearly past performance, can someone provide a recommendation, either from their contacts or better still from their own experience.

Its important to select an adviser that knows what will happen through each stage of the process, what’s normal? Reasonable? Acceptable? You may consider sector experience to be a key credential for your adviser to have, but consider of more importance the ability to demonstrate a track record of completing deals. After all you can provide the sector expertise initially, it’s the funding, valuation, negotiation and deal experience that you will probably need help with.

Contacts

Whatever the transaction the ability to find the right buyer, funder, or acquisition target is fundamental to a successful deal. Strong corporate finance advisers will be able to demonstrate either an existing relationship with an interested party or certainly the ability to reach them through their established contacts and research tools at their disposal. Although you may know the acquirer, investor / funder, or target by name, making sure you make contact with the most appropriate or specific decision maker in that organisation will be crucial to unlocking the potential transaction; indeed sometimes just getting them to take the call can prove difficult!. Good advisers are making and maintaining these relationships all day, every day.

Confidentiality

The most common concern for any owner contemplating a transaction is confidentiality. If circumstances change or no interest exists for your business, it’s important that you can continue as normal. Alternatively, your concern may be the employees’ reaction to the decision or, it may be avoiding your competitors and/or suppliers getting access to sensitive information regarding your business. Advisers can ensure confidentiality is maintained through the transaction process, as they act as an independent third party on your behalf, and therefore ensure that any information is released on a need to know basis. The controlled nature of this information flow and the vetting of acquirers / funders prior to any involvement from you will help you gain comfort with the process.

Chemistry

It may be surprising to have this on the list, but such transactions are often described as an emotional rollercoaster and as such the chemistry between you and your chosen adviser needs to be right. There may be disagreements along the way, and there will certainly be some stressful times and many late nights ahead so having an adviser who you not only have confidence in, but also trust, respect and even like will definitely all contribute towards a successful outcome and help it be a smoother process.