Mandate/Target Matching Methodology

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:

1. 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)
2. 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
3. Screen for companies that match the mandate(s) in Salesgenie and obtain CEO/owner emails and phone numbers
4. Begin emailing and calling CEO/owners and soliciting interest in taking an offer on their business from a financial or strategic buyer
5. Structure as a sell-side engagement or a buy-side engagement depending on CEO/owner’s level of interest in selling
6. Collect historical financial data for the last three years
7. Introduce the financial and/or strategic buyer to the opportunity with the summary financial information and have them sign an NDA
8. 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