After determining one’s coverage and then initiating coverage in the form of index-building, it is important for the investment banker to then begin matching investment mandate’s of strategic and financial buyers to targets within the investment banker’s coverage. The Mandate/Target Matching Methodology is the following:
- Build relationships with strategic and financial buyers in a given industry sector or subsector (Use Mergr.com as a database within which to understand investment mandates and contact information)
- Indicate your interest in sourcing deals on their behalf and obtain their investment mandate. This will usually be detailed in a one-page teaser or presentation that they will send to you
- Screen for companies that match the mandate(s) in Salesgenie and obtain CEO/owner emails and phone numbers
- Begin emailing and calling CEO/owners and soliciting interest in taking an offer on their business from a financial or strategic buyer
- Structure as a sell-side engagement or a buy-side engagement depending on CEO/owner’s level of interest in selling
- Collect historical financial data for the last three years
- Introduce the financial and/or strategic buyer to the opportunity with the summary financial information and have them sign an NDA
- Have a call with the financial and/or strategic buyer and then make the formal introduction to the CEO/owner and have a buyer/seller meeting