The Importance of Senior Level Attention
Hiring a senior banker who can position your company differently to each buyer and articulate the benefits of an acquisition will ultimately result in a more attractive outcome.
The Importance of Hiring a Senior-Level Banker
Through my interactions with banks, I’ve found that most senior bankers will pitch the business, sign off when the deal closes, but will be largely absent from the execution of the deal process. This style of advising may be adequate for large clients where senior management might have significant transaction experience. However, for most bootstrapped entrepreneurs, this is typically their first time pursuing a liquidity event, a process which has many facets, each with its own complexities and subtleties. For these entrepreneurs, a senior banker can provide valuable education related to the nuances of a transaction and alleviate multiple pain points within the process.
Senior Bankers Should Focus on Execution
When Clarity Systems was going through its diligence phases, buyers had given us hundreds of questions, and this phase would have been unnerving to walk through if I didn’t have my senior banker guiding me through the answers. A deal will also impact the founders’ families, early investors within the company, and any employees who will roll over to the new combined organization. These are very sensitive and often personal issues, which can be meticulously resolved with the consultation of a senior banker who has advised several entrepreneurs in the past. The last and most important value-add that a senior banker can provide is during negotiations with buyers. Each buyer has a different intention when acquiring your company, so hiring a senior banker who can position your company differently to each buyer and articulate the benefits of an acquisition will ultimately result in a more attractive outcome.