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What is the difference between buy-side and sell-side M&A?

If you are on the sell-side in an M&A transaction, then you are representing the seller (acquiree). If you are on the buy-side, then you are representing the buyer (acquirer).

Typically, the sell-side team will prepare the financial model to share with potential buyers. The sell-side team will essentially try to “sell” the business, so they may show a more favorable business case.

The buy-side team will dig into the analysis prepared by the seller and perform diligence. They’ll try to find the holes or the weak spots in the business. The buy-side team might also focus on identifying synergies or potential cost savings.

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