How to Choose an Investment Banker

The decision to choose an investment banker to handle your portfolio is very important. The choice could ensure success or failure of your enterprise.
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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