Wilcox I-Bankers Middle-Market M&A Monitor

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:

  1. Help clarify goals and evaluate your strategic alternatives
  2. Use various valuation techniques to provide guidance on the anticipated purchase price and the underlying rationale.
  3. Assist in positioning the company in a positive manner, including recasting the historical financial statements and building clear and credible financial projections.
  4. Prepare professional marketing materials that catch buyers’ attention.
  5. Extensively research and screen for the most desirable, qualified buyers.
  6. Aggressively market your business to qualified buyers to generate a high level of interest and to create a highly competitive market.
  7. 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.
  8. 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.
  9. Coordinate other professionals and members from your company that are involved in the process; act as a quarterback.
  10. Provide steady, consistent endurance; maintaining positive deal momentum. Extending the duration of the process and losing momentum kills deals.
  11. 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.