The Value of an Experienced Investment Banker

Global Growth Partners provides sound advice and analytical guidance that helps clients navigate the current capital markets environment.  Our investment banking team closely considers our client’s unique situation, the optimal transaction structure and industry dynamics to identify custom solutions that maximize the Company’s competitive position and value.  Furthermore, major strategic decisions require assistance with transaction options and strategies that can either enhance or diminish the Company’s value and therefore cannot be taken lightly.  GGP has extensive experience advising clients on these very sensitive and critical issues.

"Making A Market for a Transaction"

• The most important value of a full-service, credible investment banker brings to a client are i) the ability to “make a market” for the client’s company (be it an outright sale or raising capital for a buyout or acquisition) and ii) to help owners make strategic “business” decisions involving significant portions of their net worth.

• Similar to how attorneys provide professional legal counsel, and CPAs offer expert accounting advice, qualified investment bankers should provide a professional, full-service approach to navigating the current deal environment and capital markets. In this vein, GGP’s full-service professionals have the experience, dedication and global contacts to run a highly effective auction process in order to position, negotiate and close deals while simultaneously optimizing value, terms and conditions in a wide variety of investment banking transactions.

• According to numerous studies over many years, most deals fall apart (some estimates say as many as 2 out of every 3). Thus, having an experienced team of professionals with the systems and ability to conduct a well-orchestrated process with many bona-fide buyers and financing sources is invaluable and greatly increases the odds of closing a transaction with optimal market terms.

• Global Growth Partners has the flexibility to work with a full spectrum of clients. Maintaining strong relationships with global buyers and financing sources, world-class private equity groups, hedge funds, family offices, insurance group and other capital sources.

  
  

  Managing the Deal Process

  As your dedicated advisor, GGP has a proven, comprehensive and systematic investment banking approach that includes the following stages:

• Marketing & Bid Stage:  Contact potential buyers/financing sources, manage confidentiality through non-disclosure agreements, seek initial indications/letter of intents and prepare and organize data room/due diligence materials. 

• Preparation Stage:  Initial due diligence, valuation and financial analysis, create and refine list of potential buyers (though the number of candidates vary based on deal type, industry and the client preferences), prepare marketing materials (Confidential Information Memorandum and one page “teaser”)

• Negotiations/Closing Stage:  Select potential buyer for exclusive negotiations, provide access to data room/due diligence materials, negotiate terms, refine the definitive agreement and close transaction. Acting as the "quarterback" in ensuring the process goes as smoothly as possible.

  
  

In most cases, a Company would have difficulty managing the investment banking process in addition to other daily responsibilities and requirements of the business.  Potential pitfalls include:

• Potentially losing focus of daily operations (which can negatively effect the bottom line and make the transaction much more difficult).

• A Company may not have in-house experience or systems to:  i) run a smooth transaction process;  ii) conduct efficient and effective negotiations by representing themselves;  iii) prepare for and organize necessary due diligence;  iv) manage confidentiality;  or v) maintain positive working relationships with potential buyers / lenders / investment partners as negotiations heat up. 

• As most people know, it is very difficult to negotiate for yourself (in fact, a third-party negotiator can probe and test while the Company could become obligated by such activities).  Therefore, current and relevant experience as a negotiator is essential. 

• Ultimately, having an intimate knowledge of what is “market” and how different types of buyers/financing sources will behave and react is crucial to transaction success.  This knowledge only comes through years of deal execution experience.