If anything can be learned from the recent financial crisis, it’s that people will act to maximize the financial incentives offered by an organization. Financial institutions created incentive and bonus structures that proved highly lucrative to their employees, but were destructive to their organizations – and eventually the domestic and global economies.
Consistent with this theme, if an organization hires a transaction advisor whose fee is contingent on closing a deal, human nature dictates that it will be hard for the advisor to accentuate anything that might decrease the probability of closing the transaction. In addition, the technical subtleties of the transaction process are available to skew the decision making process in the direction which results in the payment of a fee.
It defies logic to compensate any advisor based on a certain, specific outcome and then expect that advisor to provide fair and unbiased guidance. With the significant impact transactions have on an organization’s future, advisor compensation should be geared to solid and ethical support, not to a certain outcome.
ITM addresses these issues through an innovative approach to transaction advisory:
• ITM Builds Acquisition Competence Within Your Organization – ITM provides experienced advisors as a technical back-stop to an organization’s existing functional leaders. ITM creates a structured, well organized approach to all aspects of the transaction which will quickly establish it as a core competency of the organization. Further, ITM’s internal approach to transaction management takes the mystery out of the process and empowers the company’s most trusted employees to make confident decisions.
• ITM Aligns Incentives – Unlike traditional bankers and brokers which receive large fees if a transaction is executed, ITM offers a reasonable fee structure geared toward providing solid and consistent advice and support – regardless of the outcome of the transaction.
Whether it’s for a single step in the process, all aspects of a single transaction or establishing an ongoing ability to continuously review transaction opportunities, ITM will provide your organization with an experienced Corporate Development Department without the investment of carrying a permanent team.
ITM delivers solid, consistent, and ethical advice and support.
