How to Choose the Right Investment Banker

You have a deal you want to get done. You’re ready to buy a business. Or, maybe ready to sell. Or, looking for a business partner. Or, wanting to refinance. But you need help. Well, investment bankers are all about helping you with that deal.

How do you pick the right investment banker? Ask the right questions.

Here’s your guide to investment banker shopping. Ask these questions in initial phone calls or meetings with potential deal advisors to get a feel for their experience and ability to get your deal done. Ask specifically about the past two years – this will give you enough history without going too far back.

1. What is the firm’s transaction history? 

a. How many transactions were closed?
b. What types of transactions were closed? (Buy-side, sell-side, refinancing?)
c. What was the transaction size range?

2. What is the firm’s reach and scope?

a. How were the transactions financed?
b. In how many different markets were the successful transactions located? (Cities, states, industries, etc.)

3. What is the firm’s personality?

a. Is there a relational jive? Do you like them?

We don’t want to be too prescriptive on what the best answers to these questions are (except the last question – you should definitely like them) because it is relative to the other options and it depends on your needs. Make a list to compare the investment bankers out there. As you consider the answers to these questions the best option will become clear.

Are you curious how The DVS Group stacks up with these questions? Find out here.