lutz logo
lutz logo
  • Services
  • News & Insights
  • About
  • Client Portal
Search
  • Services
  • Accounting
  • Consulting
  • Financial
  • M&A
  • Talent
  • Tech
  • Accounting Services
Services
  • Audit & Assurance
  • Employee Benefit Plans
  • Client Advisory Services
  • Outsourced Accounting
  • Tax
  • State & Local Tax
View All
Industries
  • Agribusiness
  • Construction
  • Family Office
  • Healthcare
  • Manufacturing & Distribution
  • Nonprofit
View All
News & Insights
Website Featured Content Images-2
Blog
Are You Prepared? Financial Access Checklist for Spouses

Share this checklist with your spouse to assure you each have access to manage important financial tasks independently.

Read More
  • Consulting Services
Services
  • Business Valuation
  • Healthcare Consulting
  • Internal Control Assessment
  • Litigation Support & Forensic
  • Risk Assessment
View All
Resources
Website Featured Content Images (1)-1
Guide
What is a Comprehensive Risk Assessment?

To start managing your business's risk, you will need to conduct a comprehensive risk assessment.

Read More
Business Insights
Website Featured Content Images (2)-1
Blog
Top 3 Financial KPIs Every Business Owner Should Track

Key Performance Indicators (KPIs) can help illustrate your business’s financial health and show whether your business will turn a profit.

Read More
  • Financial Services
Services
  • Financial Planning
  • Investment Advisory
  • Retirement Plan Services
  • Pooled Employer 401(k) Plan
View All
Resources
  • Lutz Financial Blog
  • Our Team
  • Client Portal
  • Charles Schwab Login
  • Send Files Securely
Contact Us
NEWS & INSIGHTS
Website Featured Content Images
MARKET COMMENTARY
Financial Market Updates

Want to receive financial market updates straight to your inbox? Sign up below!

Subscribe
  • M&A Services
Services
  • Sell-Side Representation
  • Transaction Advisory
  • Exit Planning
View All
Resources
Website Featured Content Images (3)
Ebook
7 Factors to Consider Before Selling Your Business

We give you exclusive insights on the business sale transaction process to help you answer seven important questions.

Read More
Business Insights
Website Featured Content Images (5)
Blog
Key Items to Review During Financial Due Diligence
The due diligence phase is critical for a Buyer to better understand the Target’s business operations and the overall quality of the financial information.
Read More
  • Talent Services
Services
  • Search & Staffing
  • Outsourced HR
  • HR Strategy & Coaching
  • HR Consulting
View All
Candidate Resources
  • Job Seeker Process
  • Current Opportunities
  • Lutz Internships
Contact Us
News & Insights
Website Featured Content Images-3
Blog
5 Benefits of Using Gallup's CliftonStrengths in Your Company

Gallup’s CliftonStrengths assessment can help you identify the strengths of the people working in your teams.

Read More
  • Tech Services
Services
  • Data Analytics & Insights
  • Outsourced IT
  • Technology Strategy
  • Software Consulting
View All
Resources
Website Featured Content Images (1)-2
Guide
Introducing Data Analytics into Your Business

Integrating data analytics into your business can help your revenue grow, the organization mitigate risk, or gain insight into your business operations.

Read More
Business Insights
Website Featured Content Images (2)-2
Blog
17 Tech Tips & Tricks

We’ve listed 17 shortcuts and hacks that will help you use tech to your advantage and make your daily life a little easier.

Read More
Business Insights
BLOG
Explore Topics

Get the latest news and insights on relevant topics that matter most to you.

View All
Webinars & Events
Events
Register Today

Register for an upcoming event or access our library of on-demand recordings.

View All
Lutz Talk Business
PODCAST
Tune In

Subscribe today for entrepreneurially spirited episodes of witty commentary for young professionals.

View All
Resources
EBOOKS & GUIDES
Download Now

Take a deep dive into challenging business topics with these free educational resources. 

View All
  • News & Insights
  • Business Insights
  • Webinars & Events
  • Lutz Talk Business
  • Resources
Business Insights
BLOG
Explore Topics

Get the latest news and insights on relevant topics that matter most to you.

View All
  • About
About

Lutz is a business solutions firm for people seeking a partner to help energize and heighten economic and organizational success.

Our Company
Our Team
Offices
Careers
Internships
Contact Us
  • Contact
Client Portal

Log in to your relevant client portal to access your account, upload documents, or make a payment.

Make a Payment
Accounting Client Portal
Financial Client Portal
Charles Schwab Login
Send Files Securely
Contact Us
  • M&A

How an M&A Advisor Can Help You Conduct a Market Analysis

Dani Sherrets, M&A Manager
August 22, 2023
How an M&A Advisor Can Help You Conduct a Market Analysis

In the world of mergers and acquisitions (M&A), conducting a thorough market analysis is essential to the transaction’s success. Simply put, a market analysis is a comprehensive study of an industry and its M&A landscape. It evaluates the deal trends and the underlying macroeconomics, assesses the financial performance of the companies in the space involved, and helps gain insights into the competitive environment. Having the right market data can mean the difference between closing a deal at the right price or missing out altogether.

 

Understanding Company and Market Dynamics

Before diving into the specifics of a market analysis, it's important to understand the broader dynamics of the company and the market it operates in. M&A advisors start by conducting a preliminary assessment of the target company's financials, including:

  • Revenue
  • Profitability
  • Growth Potential

This analysis helps determine the company's value and attractiveness to potential buyers.

In addition to the financial analysis, M&A advisors also consider the industry and market conditions. They examine industry trends that may impact the target company's future prospects, such as emerging technologies, regulatory changes, and consumer preferences. Understanding these dynamics allows advisors to identify opportunities and risks associated with the market, helping clients make strategic decisions.

 

Preliminary Valuation Analysis and Considerations

Valuation analysis is a critical component of market analysis in M&A transactions. M&A advisors utilize various methods, such as public and transaction comparables (comps), to determine the value of the target company.

  • Public comparables analysis derives an indication of value by using the stock prices of publicly traded companies and applying their multiples to the subject business.
  • Transaction comparables analysis estimates the implied value of a company by analyzing the recent acquisition prices paid in comparable transactions.

M&A advisors consider several factors during the valuation analysis, including revenue growth, profitability, market share, and synergies with potential buyers. They also take into account the current market conditions and the overall economic outlook. This comprehensive valuation analysis helps establish a realistic and fair value for the target company, setting the stage for successful negotiations.

 

Industry and Market Analysis

To gain a deeper understanding of the target company's market position, M&A advisors conduct an industry and market analysis. This analysis involves examining industry trends, competitive dynamics, and market opportunities. By studying the industry landscape, advisors can identify potential buyers or targets that align with the client's objectives.

During the market analysis, M&A advisors gather data on market size, market share, growth rates, and customer demographics. They also analyze the competitive landscape, evaluating the strengths and weaknesses of competitors and identifying any potential threats or opportunities. This information helps clients make informed decisions about potential buyers or acquisition targets, as well as devise effective strategies to maximize value.

 

M&A Process Considerations

While conducting a market analysis is important, it's to be remembered that it is just one component of the broader M&A process. M&A advisors play a critical role in guiding clients through each stage of the transaction, from due diligence to deal execution. They leverage their market analysis insights to help clients develop an acquisition or exit strategy that aligns with their goals and objectives.

Throughout the M&A process, advisors assist in preparing the necessary marketing documentation to strategically market the company, identifying prospective buyers or targets, and managing the due diligence process. They also provide guidance on deal structuring and valuation, ensuring that clients secure the best possible terms and conditions. Furthermore, advisors coordinate the closing activities, overseeing the drafting and negotiation of the purchase agreement and facilitating the smooth transfer of ownership.

Contact us to discuss how our M&A services can add value to your next transaction or if you have any questions about the market analysis process.

  • Learner, Ideation, Achiever, Responsibility, Relator

Dani Sherrets

M&A Manager
Dani Sherrets is an M&A Manager at Lutz. She began her career in 2014. Dani is responsible for supporting the execution of merger and acquisition transactions and business valuation services. She assists clients across various industries with valuation analyses, financial modeling, industry research, transaction materials, and due diligence related to M&A engagements.

402.796.7045

dsherrets@lutz.us

Recent News & Insights

Market Commentary
What Happened to the Recession of 2023? + Market Update + 9.19.23
The consensus view from economists entering 2023 was that the U.S. would likely be in a ...
Read More
M&A
Lutz adds Robert Powell to Omaha Office
Lutz, a Nebraska-based business solutions firm, recently added Robert Powell to its Omaha ...
Read More
Accounting
Lutz adds Kinney, Krause, and Wolf as Client Resource Assistants
Lutz, a Nebraska-based business solutions firm, recently added Samantha Kinney, Shelby Krause, ...
Read More
Accounting
Proposed CMS Lump Sum Payment to 340B Hospitals
The Centers for Medicare and Medicaid Services (CMS) is proposing a $9 billion lump sum ...
Read More
module-bg-desktop module-bg-mobile

Let’s get you where you want to go.

We work to simplify complexities, help make critical business decisions, and confidently focus on the things that are truly important to you. We embrace your business as our own to spark the right solutions and help you thrive.
Contact Us
Lutz-Logo-white
  • Services
    • Accounting
    • Consulting
    • Financial
    • M&A
    • Talent
    • Tech
  • About
    • Our Company
    • Our Team
    • Offices
    • Careers
    • Internships
    • Current Opportunities
  • Client Portal
    • Make a Payment
    • Accounting Client Portal
    • Financial Client Portal
    • Send Files Securely
    Submit RFP
TOLL-FREE: 866.577.0780 | © Lutz & company, PC 2023 | Privacy Policy
Follow us on Facebook Follow us on LinkedIn Follow us on Twitter Follow us on Instagram Follow us on Facebook