Roles of Investment Bankers and Business Brokers

Investment bankers can play a critical role.

D. Brown Management Profile Picture
Share

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.  


Succession
Continue building value in your business, yourself and your key team members with a good succession strategy....

Succession
Continue building value in your business, yourself and your key team members with a good succession strategy....

The Basic Math of Business Transitions
Ownership succession for a construction business is complex. Sometimes it is best to back up and look at a really simple model to keep the three primary parties focused on what is truly important.
Effectively Marketing Preconstruction Services for Subcontractors
Subcontractors can build an unbeatable competitive advantage by being engaged early in the preconstruction phase. This ultimately requires a combination of design, estimating and operational excellence.
6 Common Exit Strategies for Contractors
Contracting is a capital-intensive and risky business. The construction business is also amazing, with the owners making a good return on their capital.