Most people know about two types of investment bankers. Only one type exists. In Hollywood, the excesses of the 1980s have been sensationalized into the sociopathic bankers of American Psycho and The Wolf of Wall Street. These fictional portrayals are sensationalized and provocative, but inaccurate.
We need to talk about the real investment banker—the one who brings a partnership that offers a century of experience calmly and skillfully guiding business owners through the M&A process; the small advisory houses that have run and sold their own businesses and who now want to help you; the bankers who have done the hard work necessary to advise their clients.
These are skilled professionals, not materialistic sociopaths. Here’s what they offer the consumers they serve.
Insight and Advice
Investment bankers are the market’s information hubs. They track company values, economic trends, regulations, and more. They soak up all relevant information, and then synthesize it into something you’ll use for your next deal. They are constantly building relationships with new companies. By building relationships with them, you can ensure you access the most useful information exactly when you need it.
Investment banks offer more than advice. Some investment banks offer specialized capital, including mezzanine debt, which means they can financially support your company and become a helpful deal partner.
Investment banking companies can access capital markets, supporting you to correctly structure your balance sheet. This process also helps you nurture strategic relationships with alternative sources of capital.
What Comes Next?
Most companies hope to bequeath the business to the next generation, or perhaps promote from within. How do you prepare for this?
Some other companies hope to bring in a new partner who takes risk off of the table. How can you do this with the top financial partners in your industry? Which partner understands your business and your potential partners?
Most companies don’t have the necessary experience to answer these and other challenging questions. Investment banking companies’ very existence depends on their ability to answer these questions, then help their clients take action that is in their best interests.
- Time the transition to be perfect.
- Relentlessly research the market to find the right deal partners.
- Prepare your internal procedures, finances, and internal operations.
- They also offer wealth management assistance to support you as you transition from your career to retirement or to something else.
You need support and options. Your workload likely makes it impossible to manage the deal all on your own, so don’t try. Get on board with a company that can see your deal through—from idea to closing, and beyond.
About Kratos Capital
Trying to manage a transaction on your own is a fool’s errand. The expertise of a mergers and acquisitions advisory firm can help you better understand the other side’s motivation, and then challenge this knowledge into the best possible deal. As you navigate the process, partner with an M&A advisory team that boasts expertise in your industry. Kratos Capital can help.