What value does an investment bank bring to a middle-market company’s transaction?
There are two primary reasons a middle-market company should consider engaging an investment bank in the buy/sell process. First, while markets tend to be efficient, the right firm can assist the buyer or seller with determining the marketable value of the business. Second, there are many factors and considerations involved in a transaction: deal structure [stock/cash] and commensurate tax considerations, financing arrangements, and negotiating tactics to list just a few. The right investment bank will partner with its client to analyze all the relevant factors and choose the best structure.
