Investment Banking 101: M&A Advisory Services

A successful financial executive with considerable experience, Eric Fornell serves as vice chairman of investment banking with Wells Fargo Securities in New York City. Throughout his career, Eric Fornell has conducted extensive work in the field of M&A (mergers and acquisitions) advisory service, which represents one of the primary focus areas of investment banking.

At the most basic level, the M&A advisory service provided by investment banks relates to areas such as pricing and structuring of transactions, negotiation, and business valuation. Sell-side engagement refers to an investment bank advising a potential seller, while buy-side engagement, as the name implies, involves advice given to a potential buyer. In both cases, investment banks perform in-depth analyses involving issues such as accretion and dilution, as well as “fairness opinions,” which shed light on the financial environment of a prospective transaction. Investment banks may also advise clients on joint ventures and less-common transactional matters, such as hostile takeovers and takeover defense.