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As a private equity firm working in mergers and acquisitions, Edgewater Funds eyes businesses in many industries and corporate areas, said Ian Ross, ’05, a senior associate for Edgewater. “We probably look at close to 2,000 companies a year, funnel that down, and close on five or six as sort of our pipeline,” Ross told students at a panel on mergers and acquisitions April 19 at the University of Chicago Law School. The student-led JD/MBA Association cosponsored the event with Jenner & Block LLP. Typically teams of two, including an Edgewater partner, work on each deal, he said.
In preparing a deal, don’t underestimate the value of representation from investment bankers, brokers and attorneys, said Eyal Altman, ’03, director of corporate development for Elkay Manufacturing. “These guys really come in and clean up the house,” Altman said. “They get the financials straight and put together a presentation of what this company’s about.” Due diligence is crucial, he said. “When the fireworks are over, you’re the one stuck with the company,” Altman said. “As a seller, you really want help getting your house in order because you only have one shot at pitching your business to someone.”
Attorneys provide critical information for M&A deals, said John Cox, JD ’95, a partner at Jenner & Block LLP. “We’re often not making the decisions, but we’re providing the information that’s needed in order for a company to make a decision on whether to go forward with the deal and to price the deal, as well,” Cox said. Their biggest job is getting a deal in writing and negotiating contracts with the other side’s legal team, he said.
To get into mergers and acquisitions, “an MBA from a great institution like this” helps, said Nick Jachim, ’93, group head for KPMG Corporate Finance. The most successful investment bankers have well-rounded backgrounds and a wealth of experience, Jachim said. “They’re not just accountants,” he said. “That tends to be too narrow. They’re someone with a liberal arts background with a focus at the graduate or law school level, someone with good analytical skills and, quite frankly, someone with good writing skills. I would never underestimate that because I’ve seen some people who can’t write a lick and it drives me crazy.”
—Phil Rockrohr