As an investment banker (IB or IBanker), Mentor Securities usually is the principal trusted advisor to the selling or buying client. At the same time, we coordinate closely with at least the following professionals:
- Corporate attorney
- Transaction attorney
- Tax accountant
- Due diligence accountant / consultant
- IP attorney
- Employment attorney
- ERISA attorney
- Insurance risk analyst
And the list goes on…..
One key to a successful process is the timing and extent of who is inserted when. There is no roadmap for precisely how to include other professionals and each transaction dictates its own set of requirements. Throughout the weeks and months of diligence and legal agreements, the IBanker must move the process forward. Stalls of any significant length are often fatal.
There are often five to ten critical points in the deal lifecycle, when one or both sides dig in their heels and consider aborting the process. At those times, the skills of the IB and closest trusted advisors(s) to each side are most evident.
The ultimate question is: "When do you know a deal should crater?" The answer is simple; when one side will not entertain any compromise, no matter how insignificant. However, at times that intransigence may be overcome by the other side caving. What the IB should do in those situations is to clearly explain to their client if their position has merit. In the end, whether the deal closes or not, the IB should have the integrity to provide truthful guidance, even if does not favor the client.