10 Things Your Investment Banker Should Do For You

By Jason Wilcox

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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 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.

The information and views contained in this report were prepared by The Wilcox Group, LLC and should not be construed as an offer to buy or sell or a solicitation to buy or sell any financial instruments or to participate in any trading strategy. The information contained herein is believed to be reliable, but The Wilcox Group, LLC makes no representation as to its accuracy or completeness. Copyright © 2010 The Wilcox Group, LLC, all rights reserved. Securities offered through PetroGrowth Energy Advisors, LLC, a registered broker-dealer and member of FINRA / SIPC

Jason Wilcox is the Managing Partner and Founder of The Wilcox Group, a boutique investment bank providing sophisticated merger and acquisition and corporate finance advisory services to owners of middle market companies in the energy, industrial, infrastructure and business services sectors. His experience includes both major Wall Street and middle market investment banks where he assisted owners of private firms and executives and directors of public companies in marketing, structuring and executing a number of complex transactions.