Other Titles for Investment Banker

• Investment bankers go by other titles. Sometimes they're called corporate finance consultants, intermediaries, finders and business brokers. Business brokers usually deal with negotiating the buying and selling of small businesses and finding capital sources.
  
  

Licensing

• Investment bankers don't require any licensing or certification as long as they refrain from selling securities to the public. Most investment bankers at the top-notch firms are licensed broker-dealers. The best way to determine whether an investment banker is qualified is to ask for references and a list of verifiable companies funded, or deals completed, and to follow up on those references.
  
  

Fees

• Fees can vary. Historically the fees are based on a percentage of the capital raised or the total of the completed deal. The fee decreases as a percentage as the amount of capital increases. For example: The fee for raising $1 million might be $50,000, but the fee for $5,000,000, only $150,000--not $50,000 times five. These fees can be called a finder's fee, brokerage fee, contingency fee, deal fee, introductory fee or commission.
  
  The investment banker may also charge a retainer, which is paid regardless of whether the capital is raised or whether the deal is finalized. The retainer can be a one-time upfront fee or paid on a monthly basis. Occasionally the fee will be deducted from the percentage fee when the deal is completed.
  
  

Preparation of Documents

• Some investment bankers will assist with the preparation of the offering memorandum, private placement, or business plan. The fee for the preparation of the documents can be in addition to the retainer.
  
  Investment bankers may be attorneys. Even so, it's best to have the company's corporate attorney or an independent attorney review the documents, letters of agreement and sales documentation.
  
  

Exclusive or Nonexclusive Agreements

• The fee agreement between you and an investment banker may be on an exclusive basis or nonexclusive basis. Exclusive means the investment banker will be legally owed the fee, regardless of whether he made the introduction to the funding source, partner or buyer. Nonexclusive means that the investment banker only gets paid if he made the actual introduction and the deal is consummated.