Mon, 12 April 2021
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
In raising funding or selling your business you may consider using an investment banker.
Here are some key points to consider in making the decision:
They can build out the dataroom and do the appropriate research of competitors and comps.
An investment banker can create competition for your acquisition thus raising the buyout value.
Fees range from 3%-5% of the enterprise value along with some retainers.
In general, most investment bankers are worth the price if you bring them in at the beginning.
If you build the dataroom and find the buyer, then the value of the investment banker is reduced.
The investment banker can remove the burden of negotiating the terms including the valuation, as well as the follow-on employment.
They can free up the CEO to continue working on the business.
Choose an investment banker that has a track record in your sector and size of company.
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