10 May 2023

The benefits of outsourcing M&A research

In a perfect world M&A firms will have a consistent level of projects and access to an unlimited talent pool of M&A research analysts with realistic salary expectations. In reality, finding and keeping good people in a project-based industry is not easy. Here are 5 benefits of outsourcing M&A research to a specialist firm.

1) Access to specialized expertise

Outsourcing M&A research can provide access to specialized expertise and skills that may not be available in-house. For example, outsourcing to a research firm that specializes in a particular region can provide insights and analysis that may be difficult to obtain in-house. Secondly, accessing additional data via a specialist will likely increase more output resulting in higher-quality work.

2) Increased efficiency

Outsourcing M&A research can help to increase efficiency by allowing M&A firms to focus on their core competencies, such as deal sourcing and execution. Research is a time-consuming but necessary process, and outsourcing it can free up internal resources to focus on other ‘client-facing’ and ‘fee-earining’ aspects of the deal.

3) Cost Savings

Outsourcing M&A research can help to reduce costs associated with hiring and maintaining an in-house research team. Outsourcing firms will have access to expensive subscription databases, cover employment costs and therefore provide significant cost savings for M&A firms.

4) Enhanced Accuracy

Outsourcing M&A research can improve the accuracy and quality of research by leveraging the expertise of a specialized research firm. This can lead to better-informed decision-making and improved deal outcomes. An M&A research specialist will focus solely on research and will typically possess strong attention to detail that may be lacking from an in-house executive responsible for managing clients, deal origination, and other key responsibilities.

5) Improved Flexibility

Outsourcing M&A research can provide greater flexibility in terms of scaling up or down research activities as needed. For example, during periods of high deal activity, outsourcing can provide additional research capacity to support increased deal flow. During quieter times the firm will not have salaries to pay resulting in increased profitability for the M&A firm.

Overall, outsourcing M&A research can help M&A firms to access specialized expertise, increase efficiency, reduce costs, improve accuracy, and enhance flexibility. However, it is important to carefully evaluate potential outsourcing providers and to maintain effective communication to ensure that research meets the needs of the M&A firm.

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