Do I Need An Advisor

Approximately 90% of the companies in the U.S. have revenues under $100 million.  We believe that small and middle market companies have not had access to sophisticated financial advisors and tend to use investment banking services less frequently than larger companies.  Legacy provides top quality investment banking services to these underserved companies.  The following answers some of your most frequently asked questions regarding the investment banking business. 

1. Why should I consider hiring an investment banker for a capital raising or merger/acquisition transaction, especially if I have raised money on my own before and/or have been through a merger/acquisition?  

The most important element in this type of transaction is your success.  Often the expertise and resources required to ensure the best possible deal do not reside within a company.  Hiring a team of successful and experienced bankers who specialize in capital raising and mergers and acquisitions can make the difference between a deal that is good and a deal that is great.

2. How is the investment banker paid?

Typically with a fee that is substantially weighted toward the successful completion of the transaction.  Frequently a company will pay a modest amount to cover a portion of the banker’s time.  However, the banker’s fee is primarily based on the success of the transaction.  Consequently, the banker is given a substantial incentive to achieve your company’s objective.

3. What does the investment banker bring to the deal?

Simply:  experience and relationships.  Success in the capital markets is driven by experience, process execution, market knowledge and a reputation for quality representation.

4. How does the investment banker develop capital contacts?

More than contacts, we have relationships.  These relationships have taken years to develop.  Over time we have offered and continue to offer a steady source of investments for fund providers.  Consequently, the managers of pooled funds – often decision makers at senior levels of major national and international capital sources – have a vested interest in getting to know us.  We have found that these relationships often provide us with the ability to achieve immediate and prompt action – critical elements to ensure a successful transaction.

5. If a capable buyer of a business walks in and indicates an interest in acquiring my company and we are interested in selling, why should I take the time, trouble, and expense to engage an investment banker?

Buyers are experienced, they have their own agenda, and they want to enter into an exclusive agreement to purchase your business with no competition.  A team of investment bankers working on your behalf can help in several areas:

• We even the playing field with regard to experience
• We create competition to help keep the buyer “honest” and;
• We help ensure that you receive not only the best price for your company, but also that the buyers are the best fit for your company.