10 Things Your Investment Banker Should Do For You
One of the key roles a merger and acquisition (M&A) advisor or boutique investment bank plays is representing his client during the sale of the client’s company. Due to the importance of a company sale and the complexities that arise during a transaction, it is advisable to hire an experienced investment banker who will act as your advocate. A skilled investment banker can assist in many ways:
- Help clarify your goals and evaluate your strategic alternatives.
- Use various valuation techniques to provide guidance on the anticipated purchase price and the underlying rationale.
- Assist in positioning the company in a positive manner, including recasting the historical financial statements and building clear and credible financial projections.
- Prepare professional marketing materials that catch buyers’ attention.Extensively research and screen for the most desirable, qualified buyers.
- Aggressively market your business to qualified buyers to generate a high level of interest and to create a highly competitive market.
- Manage the flow of information and discussions between you and potential buyers.Maintain control of the process to reduce the risk of rumors and breaches of confidentiality.
- Act as a buffer between you and potential buyers to minimize emotions that could be detrimental.Navigate through the negotiating process; work to resolve the complex financial, legal, structural and tax issues that arise.
- Coordinate other professionals and members from your company that are involved in the process; act as a quarterback.
- Provide steady, consistent endurance; maintaining positive deal momentum. Extending the duration of the process and losing momentum kills deals.
- Provide helpful, objective advice based on experience and act as a sounding board throughout the process.
Make sure your investment banker is a specialist in selling companies – that it is core to his business. He should be completely focused on your transaction; actively coordinating the entire effort in order to optimize management’s time and allow management to concentrate on operating the business.
