Negotiation and deal structuring are essential components of corporate finance. When engaging in a business transaction, it is important to have a well-structured deal and to negotiate favorable terms. Corporate advisors are often engaged to provide negotiation and deal structuring services to companies looking to buy or sell assets or businesses, raise capital, or settle disputes. In this report, we will discuss what negotiation and deal structuring look like when using a corporate advisor and the typical process of the service.

Services provided by Corporate Advisors in Negotiation and Deal Structuring:

1. Deal Structuring: Corporate advisors can provide deal structuring services by assessing a company’s financial position, operations, and strategic goals. This can involve developing a transaction structure that maximizes value for all parties involved, such as an asset sale, stock sale, merger, or acquisition.
2. Negotiation Strategy: Corporate advisors can develop a negotiation strategy to help companies achieve their goals in a transaction. This can involve identifying potential areas of agreement and disagreement, developing a bargaining position, and preparing for counteroffers.
3. Due Diligence: Corporate advisors can conduct due diligence to assess the financial and legal risks associated with a potential transaction. This can involve reviewing financial statements, legal documents, and contracts, as well as assessing the market and competitive landscape.
4. Transaction Execution: Corporate advisors can provide transaction execution services, including drafting and negotiating agreements, coordinating with legal and financial advisors, and managing the closing process.

Typical Process of Negotiation and Deal Structuring Service:

1. Discovery: In the discovery phase, the corporate advisor will meet with the company’s management team to understand their strategic goals and assess the financial and legal risks associated with a potential transaction.
2. Deal Structuring: Based on the company’s goals and risk assessment, the corporate advisor will develop a deal structure that maximizes value for all parties involved.
3. Due Diligence: The corporate advisor will conduct due diligence to assess the financial and legal risks associated with the proposed transaction.
4. Negotiation Strategy: Based on the results of the due diligence, the corporate advisor will develop a negotiation strategy to help the company achieve their goals in the transaction.
5. Execution: The corporate advisor will provide transaction execution services, including drafting and negotiating agreements, coordinating with legal and financial advisors, and managing the closing process.

Benefits of Using a Corporate Advisor for Negotiation and Deal Structuring:

1. Expertise and Experience: Corporate advisors have deep expertise and experience in negotiation and deal structuring, which can help companies achieve their goals and secure favorable terms.
2. Objectivity and Impartiality: Corporate advisors can provide objective and impartial advice to help companies make informed decisions and avoid potential conflicts of interest.
3. Access to Resources: Corporate advisors have access to a wide range of resources, such as industry data, market trends, and legal and financial experts, which can help companies make informed decisions and execute their strategy.
4. Risk Mitigation: Corporate advisors can help companies identify and mitigate potential risks associated with the negotiation and deal structuring process, such as legal liabilities, financial exposure, and reputational risk.

Negotiation and deal structuring are critical components of corporate finance, providing companies with the framework for achieving their strategic goals and securing favorable terms. By engaging the services of a corporate advisor, companies can access a wide range of resources and expertise to help them structure their deals, develop a negotiation strategy, and execute their transaction. Whether it is deal structuring, negotiation strategy, due diligence, or transaction execution, corporate advisors can provide a range of services to support companies in their negotiation and deal structuring efforts and ensure their success.