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Why Should You Have an Investment banker on Speed Dial

by | March 17, 2021 | Industry Insights, Valuation, M&A, Strategic Advisory, Business Valuation

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Why Should You Have an Investment Banker on Speed Dial?

Like many of your advisers who provide valuable services and expertise, adding an Investment Banker to your list of most trusted advisers is crucial to your success.

Most Entrepreneurs rely on advisors such as CPAs, Attorneys, Wealth Managers, or Commercial Banking Relationship Managers. These professionals are vital to success, and each plays an indispensable role. However, these advisors have less to do with growth, value creation, and liquidity than a relationship with your Investment Banker.

Here is why you should have an Investment Banker on Speed Dial!

1. Market knowledge – I-Bankers see hundreds of companies from leaders to laggards, from great ideas to failures – Leverage their knowledge to achieve best-in-class results or liquidity options for your company.

2. Growth – I-Bankers make a living by sourcing appropriate capital or helping companies scale their growth and having a deep understanding of markets and opportunities to grow. Unlike many other critical advisors – we get paid by helping you secure the tools for growth. Our end-product is typically a more robust, better, more valuable company.

3. Value – Having seen many competitors and other companies like yours, as well as having a complete toolkit for organic and inorganic growth strategies, I-Bankers have first-hand knowledge of what actually creates value for a company. We are ROI-focused. We have seen the arbiter of true value creation – what creates more value at sale. Have you ever completed a project waiting for a great ROI that never appeared…it was a nice project, but did it create value? Your I-Banker can be invaluable in determining if the cap-ex spend or leadership team addition will create value. Value creation demands wisdom.

4. Offense – Your business strategy will undoubtedly encounter constraints that need to be removed. More capital, a better leadership team to execute, buy vs. build analysis and execution optionality, etc. I-Bankers take an exhaustive review and pressure test your strategy, team, and options to grow and become more profitable. We help proactively remove obstacles to your business strategy to achieve tangible, measurable results.

5. Defense – Ever had your line of credit pulled while growing 40%? Having an Investment Banker on speed dial helps defend against the ‘oh $#!+’ moment. While banks deploy 40% of the capital globally, I-Banks and alternative capital sources are responsible for the other 60%! A relationship with a knowledgeable I-Banker can save your bacon.

6. BTDT – At JD Merit, all of our senior bankers have run businesses, operated businesses, and are involved in successful exits as entrepreneurs or operators. In short, we have been-there-done-that (BTDT). Having an experienced partner on your advisory team who has “walked the walk” is invaluable to your strategic plan and a great gut-check defense against blind spots we all have in running our own businesses.

7. Free Advice – Good bankers seek to serve first. The best bankers listen first to your goals and objectives, tell you whether they can help, and equally important, tell you when they are not the right “hammer” for your particular “nail.” Having eyes and ears in the market as well as a great sounding-board, an I-Banker can dispense million-dollar advice even before you engage them at an inflection point in your company (buying, selling, raising growth capital, board service, etc.), and it may not cost you a dime.

The statistics are replete; companies with a board of directors or advisory board outperform those who do not. I would suggest having an I-Banker on your board to help you achieve a long-term strategy and protect against missing key market insights. 

If you are not ready for a board of directors or advisory board, adding an investment banker to your cadre of trusted advisors will surely provide an ROI worthy of your time. 

Call me to discuss the best path for your company to grow and for you to build real wealth through your private company. 253-370-8893 or Craig.Dickens@JDMerit.com

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