Thursday, February 3, 2011
Insights and Opinions: Fifteen things investment bankers won't tell you
Story by Megan Lisa Jones
1. They don't like your company; no reason for us to say such a thing. Better to maintain the relationship and see how a company evolves.
2. That they don't like your sector; ditto from number one. The criticism also isn't constructive. You obviously do like the sector and are committing part of your life to it. Why wreck your passion.
3. That your projections are ridiculous (see below); we'll guide you later however. Unrealistic projections only make you look bad, uninformed and show bad judgment. Better to under promise and over deliver.
4. That your valuation expectations are laughable (again, we'll guide you lower...); nothing kills a deal faster than a sky high and unrealistic price. Get some competition going for your deal and then you'll see more pricing flexibility.
5. That your competition is going to crush you; and we've listened to your competition. Investment bankers don't need to project everything (research analysts do that). (Continued...)
Read the rest of Megan's Fifteen things investment bankers won't tell you.