Special Committee Advisory
A lot of EBs appear to get special committee advisory deals on many of the mega-deals, and I was wondering what how the work/role differs between special committee advisory and "normal" sell-side/buy-side advisory. As I understand, special committee advisory often arises out of conflicts of interests, so they often entail rigorous valuation work/fairness opinions, but would appreciate more insight from anyone.
I worked in that business for a few months. It’s fairly similar to general board advisory and even general m&a advisory work to some extent. The main differences are generally heightened sensitivity to the sometimes more nuanced interpersonal and legal dynamics. Generally the special committee members who have no conflicts are sometimes the least experienced in business/finance matters as compared to the other board members (who are either company insiders or directly involved with the deal), so sometimes the work can be a little more basic/simple in terms of teaching / hand-holding. The type of valuation and financial and advisory work that needs to be done is also more geared to those kind of public company shareholder analysis situations. Often can have some sort of complicated pro forma cap stack or change in business tragedy potentially that needs to be diligenced and understood. There are other specific dynamics to it but again it is a niche that as capital markets grow bigger and more complicated is poised to grow as well
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