Submitted by: Submitted by praveensrini
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Category: People
Date Submitted: 01/06/2013 10:25 PM
Investment Banking Sales Cycle
22 December 2008
Business development group finds startup
that’s ready for IPO, via cold calling, referral
from VC, or chance meeting at strip club
Stick newly minted shares into i-bank’s latest blackbox internal prop trading vehicle, prep sales sheets
for i-bank’s wealth management branches touting
“hot new exclusive product for UHNWI”
No
I-bankers estimate
valuation using DCF
and market comps
No
Projected
takedown
meets bonus
targets?
Give referral to smaller ibank or business broker,
demand finder’s fee, laugh
behind referral’s back
I-bankers complete
underwriting estimates
and road show materials,
canvass institutions to
gauge interest in IPO
filing price range
IPO
oversubscribed?
Yes
Yes
Sufficient
interest to
generate
estimated
takedown?
File registration
papers with SEC,
contact exchanges
to schedule IPO
Launch IPO, send
talking points to
CNBC for sameday use
I-bankers meet startup,
kiss their posteriors,
promise riches if they
retain i-bank’s services
No
Tell startup “insufficient
interest” in IPO, keep all ibanking fees to date, laugh
behind startup’s back
I-bankers buy
themselves new
Lamborghinis, buy
spouses jewelry,
buy secret lovers
better jewelry
Yes
Shelve IPO, keep all
fees, write off bar
tabs and restaurant
bills as salesrelated expenses
No
Road show
results in
sufficient
participation?
Yes
Assemble underwriting
team by calling egotistical
managers, fraternity /
sorority members, prep
school classmates,
pedigreed brats, and
other such key players at
rival i-banks
Begin road show, prioritized
by institution size, previous
deal participation, offices
located in cities with best
restaurants
Copyright 2008 Alfidi Capital LLC. Legalistic disclaimerism: Alfidi Capital LLC ( http://www.alfidicapital.com) is a private investment research firm. Alfidi Capital LLC is
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