Are investment bankers worth their fees? When a deal consummates, they are often the catalyst for the result. At the same time, less than one in three brokered sellside engagements is successful. The answer to the original question is probably; more often than not.
Aside from the wide variations in levels of competence and integrity, the best …………. Bankers provide at least these advantages to a seller, buyer or investor:
- Serve as an advocate of one party, yet often act as a mediator to resolve emotional and financial divides.
- Coach their client through the process, often explaining why the opposing side thinks or acts a certain way.
- Reflect how changing certain terms or conditions of a transaction should be reflected in valuations.
- Knowing about contractual terms in the Letter of Intent and Purchase Agreement, they often can clarify the intent of the legalese.
- For a seller, isolate the best buyers to create and conduct a "silent auction" of a few choice buyers/investors.
- Encourage the buyer/investor to offer the highest price and best terms.
- Ensure that the deal process follows a "momentum" and flow, to consummate or curtail the transaction.