Tag Archives | investment banker

Hiring an Investment Banker?

investment bankerSince the economic recession that started in 2007, many people have perceived investment bankers negatively. The recession was caused in great part by the careless and unwise actions of investment banks and their regulators. Despite the negative impression people have of investment bankers, they are extremely beneficial for the economy and for individuals and companies to be profitable.

Hiring an Investment Banker?

Many larger firms use an in-house team for handling the issuance and trading of securities. However, there may be a point in the growth stage of your business that you need the external financial services of an investment banker. While there is a cost to investment banking, there are proven benefits of having outside intelligence oversee your company’s finances and securities. Following are the areas where investment bankers can help you:

Access to Capital:

Investment bankers have extensive relationships with investors, who have readily-available capital to invest in your business. Access to the investment bankers’ network of investors is a significant advantage when raising capital to invest in new technology, make strategic purchases or expand business operations. In addition, investment banks provide you with the resources and expertise you need to structure and implement deals to raise capital at profitable price points.

Knowledge about Partnerships, Mergers and Acquisitions: 

Business intelligence is the key to strategic decision-making. Investment bankers usually have extensive industry knowledge that can help you discover new opportunities to expand your business. These strategic opportunities include partnerships, mergers, and acquisitions.

Consultative Services:

Investment bankers make transactions happen for you in the moment. They also use their industry expertise and experience to advise and prepare you to act when advantageous opportunities present themselves in the future.

Working with investment bankers can be the key to your success. The ability of investment bankers to raise capital not only drives your business forward, but also the economy forward. For small businesses without financial investment divisions, hiring an investment banker will allow you to better manage investment decisions. An investment bank can put you in the best position to take advantage of strategic investment opportunities.

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Determine which candidates are the right fit for your company using our 5 Guiding Principles For Recruiting a Star-Quality Team.

investment banker, hiring an investment banker

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Securities Act of 1933

See Also:
Primary Market
Securities Exchange Act of 1934
Investment Banks
Secondary Market
Initial Public Offering (IPO)

Securities Act of 1933

The Securities Act of 1933 was a landmark decision in the United States to regulate the issuance of newly issued shares into the market – an initial public offering. The act is also there for companies to register before the issuance as to ensure reliability.

Securities Act of 1933 Meaning

The Securities Act of 1933 followed the stock market crash in 1929. It was a movement to regulate the markets as to not mislead investors. Furthermore, the idea requires due diligence so that the best possible information would hit the market. The 1933 Securities Act was also meant to do away with insider information. By requiring this information to be provided pre-issuance investors presented with the opportunity to buy shares of the firm, during the investment banker’s road show, can make well informed decisions. The due diligence required by the 1933 Securities Act is to have a full audit and compliance with Generally Accepted Accounting Principles (GAAP). Without registration and a following of the 1933 Securities Act rules a firm cannot be listed on a U.S. stock exchange until the requirements are satisfied.

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Primary Market

See Also:
Investment Banks
Initial Public Offering (IPO)
Secondary Market
Securities Act of 1933
Securities Exchange Act of 1934

Primary Market Definition

The Primary Market is where the issuance of new or original securities occur. Furthermore, these securities can range from the debentures to newly issued stocks.

Primary Market Meaning

Primary markets are typically not what the typical investor gets involved in. In fact, often times these markets are only available to selected investors. The Securities Act of 1933 regulate the primary market to ensure that all of the securities have the proper amount of information associated. Often times, they involve Initial Public Offerings or IPOs. Investment bankers bring these IPOs to the market. They will either buy the stock beforehand and sell it in the market at a profit, or they will simply sell the shares into the market and take a commission. The former is usually true for primary market stocks. Offer the stocks to very few investors that gather during “road shows” put on by investment bankers. Debentures are often done in the same way through investment bankers.

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Primary Market, Primary Market Definition

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Investment Banks

Investment Banks

Investment banks are banks that offer expert financial services. The services include the following:

They also serve as financial intermediaries between companies issuing securities and the investing public that purchases the securities; however, they do not accept deposits or offer loans like commercial banks.

League Tables

League tables rank investment banks according to performance in various categories. For example, the mergers and acquisitions league table would list the top M&A dealmakers according to the deal volume and market share.


It may be time to partner with an investment bank, but if you do not have a relationship with the CEO, then it may be difficult. Before you invest any more time, develop a relationship with your CEO so they see you as a wingman. If you’re interested in becoming the trusted advisor your CEO needs, then download your free How to be a Wingman guide here.

Investment banks

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Investment banks

See Also:
Capital Structure Management
Agency Costs
Mining the Balance Sheet for Working Capital
Inventory to Working Capital
Venture Capitalists Definition
Commercial Bank

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Is the Tide Beginning to Fall?

Today I attended a luncheon for the Turnaround Management Association of which I have been a member for approximately 10 years. During this time I have seen good economies and bad. For the past 3 years the economy has been so good that the TMA meetings looked like a Maytag repairmen convention. Today was different! The question I want to ask is, “Is the Tide Beginning to Fall?”

Is the Tide Beginning to Fall?

The room was packed with people I had not seen in 6 months. What was more thought provoking was the speaker. Not what he had to say but his recent career change.

Trained as a bankruptcy attorney the speaker had spent the last 6 years as an investment banker. Sometime during the year his firm was sold to Merrill Lynch. He recently left Merrill Lynch to join a major law firm. Doing what? Bankruptcy law!

So when the investment bankers start becoming bankruptcy attorneys maybe we should be watching the economy more closely!

Check out the warning signs of a company in trouble.

Is the Tide Beginning to Fall?

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