A wrong choice could provide poor advice, capital flight
and financial problems. To succeed you need proper synergy and partnership with
the banker.
The value of trust is very essential including commitment
and a clear vision. The banker should have the right qualification, experience
and a sharp analytical mind. Before selecting an adviser you need to consider
some key factors.
Things
to Look for when Hiring an Investment Banker
- Job experience
- Professional qualification
- Support team
- Chemistry
- Proof of successful deals
- Trust
- Resourcefulness and tenacity
Select
a Banker
The first step is to select the banker or adviser.
Approach different bankers and study their style, critical insight and
industries they operate.
Go through the arduous process and find one that
represents your interest. Study their track record, investment style, solutions
and valuation strategy.
The ability to craft a narrative, job experience,
qualification and chemistry is very important in your final choice. You need an
individual that is driven, determined and hungry for positive outcomes.
Transaction
Experience
The person of choice should have experience in closing
deals. The ability to work within a time frame and present a good outcome is important.
Study the person’s clientele and industry they operate.
The banker should have on hands experience of financial strategies and up to
date experience.
Find out the number of transactions completed in 4 years.
Another criterion is the size of the companies they managed during that period.
Study the revenue base of companies they have advised.
Another important consideration is the number of clients within
a year. You need to find out if they offer full attention to your deal.
Failed Deals
Even the top investment bankers have failed deals. This
may be due to various reasons beyond their control.
Before your selection it is advisable to find out how
many failed deals. The duration, effort and diligence of the individual are important.
To ascertain the individuals claims ask for referrals of past clients.
Talk
to CEOs
The selection process includes learning from the bankers
clients. Use the referral list to approach them and find out the bankers
competency. The feedback would be valuable to your choice of partner.
Choose the Right Firm
The company’s size, structure and team is important in
your selection. Many have different organizational structures, team sizes and
experience.
There workforce may range from senior/junior analysts,
associates and professionals in investment solutions. You should work only with
top bankers.
Make sure the senior bankers are part of the deal from
start to finish. The senior partners have the experience, network and skill to
complete a deal. Avoid working with junior partners who lack experience and
commit simple blunders.
Fees
and Communication
It is important you maintain communication with your
investment banker throughout the deal. Carefully follow the stages and any interested
investors. There is also the question of company value, fees, retainer,
purchase price and fee structure.
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