How Fractional M&A Consultants Ensure Deal Success & Efficiency

Merger and Acquisition Business Corporate Cooperation Company concept. M&Q partnership concept on wooden dices in businessman's hands.

When improperly managed, mergers and acquisitions can consume a startup or emerging growth company’s time and resources, hindering their ability to achieve successful transformations and scale toward the future.  

To strategically mitigate integration complexities and pave the way for a successful and efficient transaction, it can often be more impactful to turn to a fractional M&A consultant for support

What is Fractional M&A Support?

Fractional M&A support is the process of identifying synergies across people, processes, and systems to drive the successful combination of two separate entities after a deal goes through – but done on a predetermined project basis by an external party instead of internal company employees or teams.  

For more information about the specific types of responsibilities and job duties associated with the fractional M&A support process, head to our blog: M&A Consultants: What They Do & How They Help.

How Hiring a Fractional M&A Consultant Helps Establish Transaction Success & Efficiency 

  1. Provides access to industry experts.
  2. Ensures the development of an effective accounting function.
  3. Helps limit interruptions to operations and foster efficiency.
  4. Helps enhance the finance function and ensure processes and systems are in line ahead of time.
  5. Provides a cost-effective approach to growth and scale.

Achieving M&A deal success is crucial for startups and emerging growth companies, as it can significantly impact their growth trajectory and overall success.

As such, it is essential to focus on aligning strategic goals with the transaction, conducting the proper planning and project road mapping, establishing compliance with laws and regulations, and maintaining consistent communication with stakeholders and company teams.

By collaboratively assessing a company’s unique needs and challenges, the fractional M&A support process ensures business receives tailored expertise where it’s most needed. While the specific benefits companies can experience when hiring a fractional M&A consultant will depend on the company themselves, below are some common trends.

Fractional M&A Consultants provide access to industry experts

Due to the intricate and challenging nature of strategic transformations, embarking on a merger or acquisition requires having a robust team of specialized employees across finance, accounting, risk, technology, change management, and more.

By aligning on company needs and providing access to experienced industry professionals, the fractional M&A support process helps remove M&A intricacy from the equation, empowering startups and emerging growth companies to bridge resource and knowledge gaps effectively while laying the groundwork for a successful deal. 

Fractional M&A Consultants ensure the development of an effective accounting function

M&A accounting plays a central role in ensuring the financial impact of the transaction is accurately represented, guiding the success of M&A due diligence, negotiation, and the integration of two separate entities. 

The fractional M&A support process ensures the establishment of an effective accounting function by providing a comprehensive understanding of accounting regulations, implementing GAAP standards and best practices, and eliminating redundancies across key accounting processes.

For more information about the startup and emerging growth M&A accounting process, head to our blog: Accounting for Startup M&A Transactions: Challenges & Tips for Success.

Fractional M&A Consultants help limit interruptions to operations and foster efficiency  

Mergers and acquisitions often distract from the core of startup and emerging growth company goals, causing interruptions to operations and leaving employees feeling unsupported and disorganized.  

Fractional M&A support helps limit interruptions to day-to-day operations and reduce downtime by: 

  • Crafting comprehensive integration roadmaps to meet key project milestones. 
  • Enlisting seasoned change management professionals. 
  • Streamlining communication and collaboration with stakeholders and across company teams. 

Fractional M&A Consultants help enhance the finance function and ensure processes and systems are in line ahead of time  

Whether due to misconfigured systems, redundant processes, or an inability to access historical company data, some of the main causes of M&A delays stem from both the finance function and technology environment.   

Depending on the startup or emerging growth company’s unique needs and situation, fractional M&A consultants will support the M&A transaction and build an effective finance function by:  

  • Developing and integrating financial and operational strategies to drive efficiency. 
  • Implementing systems to ensure valuations are accurate and reliable. 
  • Conducting sell-side and buy-side due diligence to establish accuracy and reliability of pricing structures and ensure that all assets can be sold for a profit. 
  • Providing support for transactions by executing key project deadlines and driving process efficiency at every level. 
  • Combining people, processes, and technology to foster efficiency and eliminate redundancy after a deal goes through. 
  • Managing the transaction project by monitoring progress and deadlines. 
  • If necessary, ensuring a smooth audit process and assisting with the development of auditable financial statements. 

Fractional M&A Consultants provide a cost-effective approach to growth and scale  

Rather than building out an internal team of M&A specialists and pulling current employees away from their day-to-day responsibilities, the fractional M&A support process provides a more cost-effective approach to growth and scale.   

Instead of hiring a full-time employee (or several) and getting them all caught up to speed, startups and emerging growth companies will hit the ground running with access to a team of industry experts – and often at a fraction of the cost.  

Final Thoughts on the Benefits of Fractional M&A Support  

By turning to fractional M&A support, startups and emerging growth companies can easily bypass the expense and effort of building an internal M&A team from scratch. Instead, they gain access to a seasoned team of industry professionals and become uniquely equipped to grow, scale, and evolve.

If you’re looking for a trusted M&A consultant or team, Kranz consulting is here to help reduce transaction complexity and drive deal value through a tailored, cost-effective approach. Contact us today or explore how we can partner for growth here.