Five Myths About Hiring an Investment Banker

About the Episode

Do you know how an investment banker can help you sell your company? Do you know the questions to ask to find the right one to help close the transaction? Bill Snow, an experienced Investment Banker, offers his insights into the top five myths surrounding hiring and working with an investment banker. 

“Finding a buyer is the easiest part of the transaction. Getting a deal done that makes sense for the seller is the most difficult part.”

Bill Snow

What You’ll Learn

• Myth 1: Invest bankers should know lots of buyers. Finding a buyer is easy; getting the right deal is hard. The real value of an investment banker is in negotiating terms, running a competitive process, and maximizing the value of your business.
• Myth 2: Industry experience is vital. Industry experience is overrated. What matters most is the ability to run an orderly sale process, understand the fundamentals of selling a business, and effectively communicate with potential buyers.
• Myth 3: Investment bankers can impact offers and deals. Don’t focus on an investment banker’s “magic words” or ask price. Instead, look for their ability to clear the market, create competitive bidding, and help you understand the true value of your business.
• Myth 4: Investment bankers will set an asking price for your business. Most of the time, investment bankers put together all the information buyers need to make an offer but do not include an asking price. Buyers should study the provided information and make an offer they can support and close while being mindful that they have competition.
• Myth 5: Fees are a critical component of hiring an investment banker.  The cost of an investment banker is often minimal compared to the potential value they can add. A good banker can save or earn you significantly more through skilled negotiation and deal structuring

“The number one impact on valuation is the strength of the underlying asset.”

Bill Snow

Topics Covered

Want More? Related Resources: 

• Net Working Capital (NWC) for M&A – A Complete Guide
• Do I Need to Hire a Local Business Broker?
• What Percentage of Businesses Sell?

Meet Our Guest

Bill Snow

Managing Director, FOCUS Investment Banking | Chicago, IL

Bill Snow is an experienced M&A professional with over 30 years in the industry, including almost two decades as an investment banker. He is a Managing Director at FOCUS Investment Banking. His work includes business sales and capital raises for middle-market companies as well as buy-side services for acquirers seeking middle-market companies.

He has written articles for online sources, as well as books about mergers and acquisitions, most notably Mergers & Acquisitions For Dummies, now in its second edition.

LinkedIn: https://www.linkedin.com/in/billsnow/