Blog | Middle Market Investment Banking Insights

M&A Advisor: What Your Investment Banker Should Do For You

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One of the key roles a 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.