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When entrepreneurs are prepared to make a pivotal decision, such as the sale or acquisition of a business or a shareholder buy out, they require appropriate expert guidance.
This is where Simon Marcotte Légaré, Senior Director, M&A and Corporate Financing Advisor, comes in.
How could we summarize your specialization?
The work of an M&A and corporate financing advisor consists in guiding entrepreneurs when they’re planning on selling their business, decide to acquire another business or require capital to finance major projects, such as a shareholder buy out or significant capital expenditures in connection with expansions. The businesses we work with are from various industries and typically generate revenues of more than $30 million.
Can you tell us about a typical day?
Our work is very diversified. I couldn’t really tell you about a typical day, but in a typical week, there could be several tasks such as:
- Numerous work sessions with colleagues and our clients to gather information about the business and its financial situation;
- Preparing financial models and drafting marketing documents used to pitch potential clients or approach targeted buyers or financial partners;
- Meetings with these potential clients or partners (buyers, investors, banks, etc.);
- Reviewing and negotiating legal documents such as the letters of intent, share purchase agreements or credit agreements;
- Participating in various business development meetings and activities.
Transaction processes usually last about three to four months for a financing mandate and nine to twelve months for the sale of a business.
Is the demand for this profession on the rise?
Yes, it is on the rise. The economic context of recent years has been favourable: private equity funds raising of billions of dollars to invest in private companies, great availability of funds on favourable terms with banks and high stock market valuations.
Furthermore, many entrepreneurs are reaching retirement age and want to sell their businesses.
The economic headwinds we are facing will enhance our involvement in accompanying entrepreneurs to ensure a successful transaction.
What do you most like about your work? What are some challenges?
I chose this profession because I’m passionate about this field. We touch on advanced finance concepts as well as corporate strategy. It requires the comprehension and application of advanced finance concepts as well as corporate strategy.
It’s also very rewarding to guide entrepreneurs through these crucial moments of their professional life, like buying a growing business, a shareholder buy out or selling a family business upon retirement.
As for challenges, I would have to say that each transaction has its challenges. We need to prevent more difficult situations and find creative solutions when they occur. These challenges can vary from financial performance during the transaction process, a communication issue between the client and potential financial partners, risk elements identified during the due diligence review, legal issues when negotiating the transaction’s terms and conditions, macro-economic conditions etc. We must be prepared for several contingencies and be solution oriented.
Do you work with other experts?
In our profession, we essentially play the role of quarterback of the transactional process. We have to ensure that everything runs smoothly at every stage, that instructions and objectives are properly communicated between all parties and that the interventions of the several professionals involved are well managed. This includes the client’s audit team, each party’s tax specialists and legal advisors as well as the due diligence teams.
What skills are needed to carry out this specialization?
Essentially, it requires knowledge of corporate finance and accounting, as well as an understanding of the business world and corporate strategy. The studies that lead to this profession are generally a bachelor’s degree in finance, accounting or business administration.
Afterwards, there are several specializations to choose from: chartered financial analyst (CFA), chartered accountant (CA), business valuator (CBV) or an MBA. Obviously, these specializations can be useful, but they are not a prerequisite for becoming a successful M&A Advisor. Strong communication and negotiating skills are also very helpful working in this field.
Do you have advice for people who would like to be an M&A Advisor like yourself?
The technical aspect is important in this profession, but we must not forget the human side, which is essential for building relationships of trust with our clients and with the various parties involved in a transaction. In ordre to succeed, you must be passionate, persevering, a good listener, a team player, a problem solver, and have the ability to learn quickly and the desire to make a difference.
Can you describe the working atmosphere at Raymond Chabot Grant Thornton?
The values I just mentioned are also important for the firm and our team. Support and mutual help are an important part of our success. The well-being and development of our employees is paramount. We enjoy an environment where newcomers can quickly advance in their careers. Teamwork is based on collaboration. And we put all our knowledge and expertise at the service of our clients.