How to choose the right investment banker for your IPO

Choosing a qualified, experienced investment banker with significant transaction experience to speak to your company may be the most imperative decision you make to guarantee a fruitful sale of your business. If you choose poorly, the drawback is not kidding, as even good bankers can derail a deal with awful advice, misguided thinking, or a distortion of their skill-sets, the nature of their relationships, negotiating ability, and general transaction experience.

The question here is “How to select the right investment banker for your business?”

The "Companion" banker

Relationships are built on trust, and an association with an investment banker is no exception. You have a considerable measure riding on the outcome of this relationship, so when screening potential investment bankers you have to consider the applicant's likeability, communication style, and trustworthiness. If you don't bond with an investment banker amid the initial interview, keep looking.

Experience

There is no substitute for experience in investment banking. Since the nature of investment banking is fairly speculative, the person you choose to speak to your company's advantages' should be confident in his ability to acquire the highest conceivable price in the IPO.

Motive

If you are looking for the highest valuation from any funding source, you need a banker that is aggressive at getting the opportunity priced up. If you are more concerned about finding the right partner with the right fit, be cautious at picking a banker that is incentivised to discover who will come in at the highest price. Sifting through this information might be difficult and require being a good judge of character, or having external references to go down your choice in banker. You'll generally need to intimately know your own particular business goals so you can make sure your banker has the same.

In the end, your business is just worth as much as somebody is willing to pay for it. Be that as it may, a good banker should know enough about industry trends, current market movement, average multiples, and other valuation factors to give you a ballpark figure of what your company is worth.