You want to ensure you’re in good hands when it comes to the future of your company. You want to maximize the valuation of your business, and professional financial guidance from an experienced investment banker will help you go a long way. An investment banker is a person who helps companies raise capital by providing them with advice on mergers and acquisitions, capitalization and monetization, as well as advice on how to handle their investor relations. They can also help companies manage their financial affairs through financial analysis and research.

Your search to find the right investment banker is not about finding the cheapest, but rather it’s about finding the banker who can best assist you in meeting your overall business goals. Keep reading for more information on things to consider when choosing an investment banker.

Industry Experience

Check if the investment bankers have experience with a closely related sector to your niche market. They will be more knowledgeable about the specifics of the industry and be able to make the most of opportunities. They will also be familiar with the terminology and workings of the market, allowing them to comprehend the value your business adds to the field and make the best use of it when developing marketing materials. Check to see if the investment banker has recently completed any transactions in your sector.

Sometimes, spending too much time with a particular industry can prove disadvantageous too. The investment banker might find it difficult to manage difficult and sensitive negotiations with a company they know well and fetch a high price.

Experience in Similar Sizes

The size of the deals your investment banker has worked with is a very critical factor to be considered. If your company is considerably bigger than the banker’s typical deal size, they might not have the knowledge and resources to represent you effectively during the sale process. Also, if the banker’s usual deal size is significantly smaller than your company’s, you might not receive the attention and effort needed to succeed.

Network of Contacts

Certain aspects of investment banking are a game of networking. A well-connected firm or an individual will be better positioned to bring in prospective buyers from the relevant industry.

Fees

Previously, investment bankers used to charge a monthly fixed fee and a percentage when a deal was closed. Nowadays, there is a variety of compensation models. Talk to the investment bankers about the models you prefer and check if it aligns with theirs.

Comfort Level and Trust

Your investment banker is someone who will be spending a lot of time with you discussing your most confidential financial matters. You will be in constant contact with them, especially if you are planning for a sale or going public. Sailing through difficult times, which are often very emotional, can be smooth only if you are comfortable with your investment banker and trust them. Spend time, weigh your options carefully, and get to know the bankers well before you choose your investment banker.

If you are looking for advice on acquisitions, mergers, and arranging private placements of debt and equity, contact Bridge Capital Associates. We are a broker/dealer specializing in mid-market investment banking with vast experiences and expertise in providing a wide range of financial services to companies of all sizes. Call (770) 923-9632 or reach out to us here for more details.