5 Key Decisions you need to make when are choosing an Investment Banker

There are 5 key decisionsyou need to make if you are a CEO, a Board or an entrepreneur selecting an investment banker. 

Information regarding their past transactions is essential. While quantum is an important factor, it should not be a restrictive one. ‘The more the merrier’ is not the correct rationale here since it is the execution that matters in the long term. Try to find relevant cases that fall within the ambit of your industry, rather than the market as a whole. This makes comprehension about their relative performance more reliable. 

Creating material to substantiate strategy and financials plays a major role in the process of making a M&A transaction a success. Given that the investors or buyers would assess your business through management presentations and information, review investment documentation prepared for other clients.

People are the vital assets for an investment bank. A team that understands your business and aims and ambitions adds more value to your business. It is essential to know the skills and expereice and working style of the banking team who would be working with you. 

Ask questions about the valuation of your business and the strategic fit with potential buyers. Review the details of a target viable buyer or investor list. This add to your ability evaluate an investment banker’s market awareness, industry contacts and M&A experience. 

Large monthly retainers might not be the best motivator to an investment bank, but a success fee based on transaction value will . Fee structure compared to other investment banks should be considered before finalising your selection.

Jacanda Capital is an advisory group skilled in carrying out M&A Australia activity. As an M&A advisor in Australia, Jacanda Capital has entered into a strategic alliance with San Francisco-based Atlas Technology group, to provide strategic investment advisory services to Australian companies, especially those in the technological sector. 

Jacanda Capital specialises in M&A in the media, telecommunications, software and the technology sectors. Working as an M&A advisor in Sydney, members of the Jacanda Capital team have advised companies in over 100 transactions with a combined value of over $4.5 bn. Jacanda Capital is an M&A advisor in Sydney licensed under the Australian Securities and Investments Commission to offer financial advisory services operating within the wholesale financial sector in Australia.