Leadership Learnings

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

not affiliated with any broker-dealer...