Roles of Investment Bankers and Business Brokers

Investment bankers can play a critical role.

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Especially if the exit strategy is selling to a strategic buyer or merger with another contractor.   

With a combination of generally negative media attention and contractor’s general unfamiliarity with what investment bankers really do causes them to have reputations almost as bad as consultants.  

Succession: Roles of Investment Bankers and Business Brokers.

With that bit of humor out of the way, let’s focus on the value that an investment banker brings to the table:

  • There isn’t a “dating” website listing all contractors that might be interested in buying or selling that you can browse on your phone by swiping right or left. Investment bankers have a network, know the market, know the players, and have systems to develop a qualified list of prospects for either buying or selling.  
  • With that knowledge, they can help set reasonable market valuation, advise the contractor on the best approach, and “package” the business to market it effectively.  
  • Within reason, the investment bankers can keep everything confidential. Though, if your business has some unique characteristics, those characteristics are easy enough to identify.  
  • They can also handle many of the details behind the scenes, allowing management to continue focusing on running the business.

Their value-add heavily depends in the specifics of the deal and a contractor should rigorously interview different investment bankers helping ensure a good fit.  


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