818-991-4150
Mentor Securities Home Services Professionals Industries Transactions Contact Us
Learn what sets us apart from others. Meet our professional team at Mentor Securities. Read the latest news from our firm's blog. Fill out our evaluation form to request a consultation.

WHY NOT USE AN INVESTMENT BANK?

For different but similar reasons, some buyers and sellers choose not to employ an investment bank (IB). When a trusted advisor strongly urges their client, buyer or seller, to hire an IB, that usually gets their attention. Short of that happening, prospective buyers and sellers provide these excuses:

  1. I know how to buy (sell) a business and only need my lawyers to effect a deal.
  2. I do not want to pay the "exorbitant" fees of IB's.
  3. Sellers: I believe the deal I will consummate (have struck) will stand, and not be re-traded below my bottom line minimum.
  4. I just do not need any party in the middle, between me and the seller (buyer).

Contrary to the above, we offer the following reasons which justify the use of an IB.

  1. At least 50% more deals get done with the help of the IB, than without.
  2. Pricing of deals is usually 30-40% higher, based upon the presentation and negotiation skills of the IB.
  3. Buyers and sellers have much greater credibility when represented by an IB, especially with the opposite party and their trusted advisors.
  4. Buyers and sellers must focus on their own business operations, and let the professionals do their jobs.
  5. Most importantly, a good IB will uncover issues to be corrected and resolved before they are presented to a buyer.
  6. Buyers need the IB with sound and deep contacts in a particular vertical, in order to maximize those relationships.
Categories: General

Comments

No Comments Posted

818.991.4150
818.597.3559

200 N. Westlake Boulevard
Suite 204
Westlake Village, CA 91362
Map & Directions [+]

Home
Services
Professionals
Industries
Transactions
Contact Us
Contact Us