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Companies considering M&A transactions commonly hire financial advisors to assist them in the buying or selling process. It can be difficult, however, to negotiate the terms of a financial advisor’s engagement, especially the advisor’s fees. Financial advisory firms are opaque about what they charge for comparable transactions, and publicly available information is scarce. But with Lexis® Market Tracker, you can compile information about financial advisory fees that have been disclosed in M&A filings to get a sense of how much the fee is relative to the deal value. Here’s how it works:
Lexis® Market Tracker contains search filters that can be combined to create a deep, customized search of M&A transactions. The Transactional Advisors category contains search filters for legal and financial advisors, including filters for fees to the acquirer’s and target’s financial advisors. If the fees were publicly disclosed, they will be visible in the “Target banker fee amount” and “Acquirer banker fee amount” columns that are added to the search results pane by clicking on “Select All.”
You can use these fields to search for fee information over the entire public M&A database, which covers deals valued at $200 million and above starting from 2010. Or you could narrow your search by combining this field with other search fields. For example, if you are representing a target company that will be valued at over $1 billion, and you want financial advisory fee information from a specific timeframe, you could use the “Deal Amount” and “Date” fields to narrow the results visible in the search results pane. You can also click “Select All” on the “Target advisors/bankers (bank)” field to see the names of the target’s financial advisors for each deal in the search results.
You can generate analyses on these search results by clicking on the “Show Statistics” button at the top of any of the columns. For instance, if you wanted to see analytics on the “Target banker fee amount” results, click on “Show Statistics” to see the minimum, maximum, median, and mean amounts. You can also click “Show Statistics” at the top of the “Target advisors/bankers (bank)” column to see which financial advisors have been most active in these deals.
You can also filter by the name of the financial advisor. For instance, if the target company is negotiating with Goldman Sachs, you can type in the name of the advisor in the “Target advisors/bankers (bank)” field or select the name from the drop-down menu to see just that advisor’s fee results.
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This is just one example of how Lexis® Market Tracker can help you negotiate M&A deals more effectively by analyzing deal information from thousands of transactions. Learn more about Lexis® Market Tracker here:
For access to Lexis® Market Tracker as well as comprehensive coverage of a host of transactional law topics, visit Lexis Practice Advisor. Click this link for a free 14-day trial! To learn more about Lexis® Market Tracker and Lexis Practice Advisor, click here.