An Investment Banker Should Be Your Advocate
Selling a company is complex. Make sure your investment banker is a specialist in selling companies and that he is focused on your deal. 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 Assists In Many Ways:
- Help clarify 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 discussion between 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 the 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.
An Investment Banker Should Specialize in Selling Companies
Make sure your investment banker is a specialist in selling companies – that is core to his business. He should completely focused on your transaction; actively coordinating the entire effort in order to optimize management’s time, minimize distractions and allow management to concentrate on operating the business.
