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October 09, 2017 No Comments Author: Andy Jones

Smoothing the I-Bank Deal Flow Cycle

One of the challenges of managing a mid-market M&A firm is coping with the sporadic, binary nature of the payoff for your efforts. In an industry where the compensation for a deal is often a large lump sum or nothing at all, it’s critical to manage both the company’s internal cash flow and the work-flow roller coaster for the firm’s team.

Below, I discuss various ways investment banks may smooth their cash flow cycle.

October 02, 2017 No Comments Author: Andy Jones

Interview – Dante Fichera with Independent Investment Bankers

We recently interviewed Dante Fichera, the owner and operator of Independent Investment Bankers Corp. (IIB), a registered broker-dealer and FINRA/SIPC member that supports investment banking professionals engaged in mergers & acquisitions and capital raising activities. As a broker dealer, Dante shared his firm’s strategy to help investment bankers succeed and his thoughts on the overall outlook for M&A.

October 28, 2009 No Comments Author: Andy Jones

Investment Banks – after the Crisis

Bulge-bracket is a term used in corporate finance to describe the largest and often most prestigious investment banks. Although there is no strict metric for this classification, bulge-bracket investment banks typically represent clients with transaction values in excess of $50 million.

[NOTE: www.PrivateEquityInfo.com segregates investment banking firms by the enterprise value of the firms’ typical clients.]

Prior to the 2007-2008 sub prime mortgage crisis, bulge-bracket firms dominated Wall Street. However, many of the largest investment banks were highly leveraged, having borrowed sums of money that were too large relative to their cash or equity capital. This borrowing essentially leverages (amplifies) a firm’s returns (up or down), making the firms particularly vulnerable to market movements. The sub prime crisis therefore had far reaching effects and served as a cleansing of sorts for the financial markets. As the value of mortgage-backed securities in the investment banks’ leveraged portfolios declined, so did the banks’ solvency, which begs the questions: What happened to the Bulge Bracket firms and where are they now?

June 18, 2009 No Comments Author: Andy Jones

Investment Banking – Fees

In selecting a Merger & Acquisition advisor, also referred to as an investment banker, the Seller will sign a negotiable engagement letter outlining the fee structure, the service to be provided, and other general terms of agreement.

The M&A Advisor’s fee structure includes a success fee and often a retainer fee and an expense reimbursement fee as well. The inclusion or exclusion of these three components will vary, depending on the investment bank, the deal size and the particular client.

April 07, 2009 No Comments Author: Andy Jones

Investment Banks – Classification

Merger and acquisition (M&A) advisors provide strategic advisory services for corporate mergers, acquisitions and other types of financial transactions as well as assist public and private corporations in raising equity and debt in the capital markets. These corporate finance advisory firms facilitate mergers and acquisitions, private placements and corporate restructuring.

Corporate finance advisory firms are broadly categorized within the industry as:

  • Bulge Bracket
  • Middle Market
  • Business Broker