Five questions you must ask your investment banker or advisor
You’ve made the strategic decision to either grow your company via acquisition or sell your company for a variety of reasons. Plus, you’ve done enough research to understand that working with a firm that knows the M&A game is optimal versus stumbling through it alone.
While there are many options—lawyers, CPA’s, business brokers—to name a few, an investment bank is your best move. FOCUS Investment Banking, LLC, sponsored a white paper entitled, “Your Corporate Development Business Strategy: Five Questions to Ask When Selecting an Investment Banking Firm” which can be downloaded here.
Here’s a synopsis of five key questions to ask when investigating a potential investment banker/advisor:
- Does the investment bank you’re considering offer strategic advisory services? You probably already have a solution to the strategic direction you’re taking your company. But have you vetted all possible solutions or are you stuck on one in particular? In helping you achieve your goals, a firm like FOCUS that consults in addition to managing buy/sell activities has the expertise, judgment, and informed know-how to examine all possible and profitable solutions.
- Does the firm have a proven transactional methodology for delivering results? There’s a strong correlation between success rates and a well-documented, highly managed buy/sell process. Items such as planning meetings, research plans, confidential information memorandums (CIM’s), and contacting potential buyers/sellers are only a few of the elements leading to a successful transaction.
- Does the firm have experienced bankers who bring years of experience to your transaction? Not only do you want your investment bankers to have years of experience transacting engagements—you also need bankers who have operational experience. In essence, an investment banking firm like FOCUS has lived in your world, gaining exceptional empathy and understanding of your situation and desired goals.
- Does the firm have a professional research department dedicated solely to the success of each transaction? It is rare for a firm serving middle markets to have a separate research team. Those who do are much more capable of digging in deeper and identifying hard-to-find, privately-owned firms as well as public firms and private equity groups. FOCUS features a superb staff of diligent research professionals.
- Does the firm have experience in the transaction size and scope you are pursuing? You’ll profit by dealing with a firm experienced in playing in a playground size like yours. If you’re a middle market company, hiring someone from either small—or very large—corporate environments may not produce optimal results. For over three decades, FOCUS has built a solid history of success in middle market transactions.
FOCUS Investment Banking is a trusted name in M&A advisory services with a nationwide footprint and a global reach. Our experienced team of bankers have helped hundreds of business owners sell their company, expand via acquisition, or raise capital. Learn more about our experience.