How Would You Go About Choosing an Investment Banker for an IPO?
- If you want to find the very best investment banks in the world, you'll run across numerous names that will sound familiar from their TV commercials. The Maps of World website's Finance page lists the top 10 investment banks internationally. The top three, as of 2011, are Goldman Sachs, JP Morgan Chase and Morgan Stanley.
- A company will have to work closely with an investment banker, and how well they get along will be critical to success. An investment banker needs to have good communication skills as well as being trustworthy. If you're the company CEO, check with other companies you know well to find out whom they work with. By doing so, you can get a better determination through word-of-mouth of the banker's level of trustworthiness. If you don't click with the investment banker during the first interview, it's best to find another one, says the website Gaebler.com.
- Investment bankers will have certain expertise in various kinds of businesses. It's important for a company to choose a banker who has the knowledge suitable for the situation. Be sure to ask the banker during the interview process what kind of companies he has specialized in. A close match with the company's market sectors will give the investment banker a firmer foothold on understanding the company and where to raise capital for it.
- An inexperienced investment banker will generally lack the confidence to go after the highest possible capital amount for a company's IPO, says Gaebler.com. The more experience the investment banker has in dealing with that situation, the better the chance of success in finding capital, due to the banker's longstanding connections.
Best Investment Banks
Personality Match
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