Investment Banker Term Paper

Open, View, and/or
Download this Document

Total Length: 609 words ( 2 double-spaced pages)

Total Sources: 2

Page 1 of 2

Finance

There are several issues to consider when selecting an investment banker for an IPO. First of all, the respective bank (or the banker himself) needs to have an established track record that can be proven with concrete figures and performance thresholds. It is important to have relevant data to back assumptions that guarantee the bank's relevance in the industry, particularly in terms of previous successful IPOs and connections in the field. Another important issue will be the investment bank's capabilities: does it have sufficient resources to properly handle an IPO?

At the same time, it is important for the investment bank to match the profile of the company undertaking the IPO: it is useful to have an investment bank that understands the particularities of the business, not only of the financial perspective on things. It will thus also be able to build easier connections related to the IPO in case. The key here is to have a good fit with the overall IPO company's case (Lainee, Plantier, 2006).

Stuck Writing Your "Investment Banker" Term Paper?

View All Our Example Investment Banker Term Paper

Have A Custom Example Essay Written



Lainee and Plantier (2006) also point out that it is useful to analyze the motivation of the investment bank, so that is also something to be considered an issue in the selection process. Likely, this is not only related to being able to evaluate how serious the investment bank is about supporting the IPO and to having an analysis of what the bank's strategy is likely to be, but also about how high the company launching the IPO will be on the bank's list of priorities. If the priority for the investment bank is to make money, then it will likely look at big IPOs, which would mean that it will focus less attention on the smaller IPOs it undertakes.

Another issue of interest in selecting the investment bank is that the bank should probably….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


Related Essays

Credit Rating Agencies Essay

overhaul of credit rating agencies, 2014, p. 3). Prior to the 2008 housing bubble burst, investment bankers and securities issuers practiced what is known as “ratings shopping” and hired the CRA that would provide them with the most advantageous ratings (New rules will fail to reform ratings agencies, 2014). Although regulators have encouraged CRAs to offer unsolicited ratings on issuances they have not been hired to rate, ratings shopping has been revived (New rules will fail to reform ratings agencies, 2014). Most industry analysts agree that the CRAs were responsible for causing the financial crisis, with the overarching motivation being greed (New rules will fail… Continue Reading...

sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Investment Banker" (2014, July 25) Retrieved May 16, 2024, from
https://www.aceyourpaper.com/essays/investment-banker-190747

Latest MLA Format (8th edition)

Copy Reference
"Investment Banker" 25 July 2014. Web.16 May. 2024. <
https://www.aceyourpaper.com/essays/investment-banker-190747>

Latest Chicago Format (16th edition)

Copy Reference
"Investment Banker", 25 July 2014, Accessed.16 May. 2024,
https://www.aceyourpaper.com/essays/investment-banker-190747
   

Open, View, and/or
Download this Document
order custom essay example