13 Questions to Ask the Investment Bankers before Finalizing On Any One

Selecting companies that offer investment banking in India is not as easy as it once was, given there exists too many of them.

But since this could probably be the biggest step for your company- approaching an investment banker, which can potentially steer your business towards or away from success- significant amount of time must be spent on screening them and picking only the best one. After all, these are the people who will pillar-up the financial structure of your company and sustain it.

Here are 13 important questions to ask the potential investment banks in Kolkata- and assess their answers- before finalizing on any one:

(“Your” “You” refers to the investment banker/bank; “I” “me” “we” refers to you and your company)

1. What kind of industries do you specialize in?
2. What is your biggest USP that sets you apart from other investment banks?
3. Why should I TRUST you with my company’s finance?
4. How many clients have you served from my industry?
5. Where do you see my industry heading in the next 5 years?
6. In past 3 years, how many deals you FAILED to close and why?
7. What’s your average time to close a deal?
8. What’s the largest size of firm you’ve had experience working with?
9. What’s the largest transaction you have completed in any industry?
10. Who would be the first few people, companies, or institutions you would go to for funds?
11. Can you provide some references of recent time clients?
12. Give me an overview, how much will be the approximate valuation of my company?
13. What is your fee structure?

Answer to these 13 important questions will give you substantial information about the your potential investment banking companies in Mumbai, or anywhere for that matter; like their experience, expertise, work potential, and should you trust them or not.

It will ease up your whole screening process and help you choose the best professionals that offer investment banking in India.

So don’t sit mum the next time you’re in front of an investment banker. Keep busy, keep smart with these questions.

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Significant Role of Investment Banking For Startups in Kolkata

The startup scene is thriving in India. But so is the competition in this space. And this makes it significant that new entrepreneurs, irrespective of their niche, outsource the services of investment banking to make the most sane and efficient financial decisions and moves.

Confused how investment banking can and will really help you? Or what is their exact role or function? Here are few important ways they play messiah for new (and old) businesses.

When you decide to take it public… they underwrite

One of the biggest functions of investment banks in Kolkata is to underwrite shares and bond. In the Initial Public Offering (IPO) they do a complete valuation of their client’s company and they underwrite the shares and bonds accordingly. If the valuation is high, they usually syndicate with other investment banks and arrange for the required capital. 

They also act as an intermediary between the clients and stock exchange. 

When financially confused… they advise

Every business faces some kind of financial obstacle on the journey- some more than others. Investment bankers in Kolkata extend their services and offer their expert advice to their clients during dark times. What type of securities to purchase, what types to sell, what kind of assets to invest in and from who to stay away from. With their advice, they pillar-up the financial structure of the companies and shorten their span of ‘downturn period.’ 

During merger and acquisition… they represent (the clients)

To raise capital with mergers and acquisition, the investment banks in Kolkata represents their clients. They contact the bidders on the clients’ behalf, coordinate and negotiate with them and then finalize the deal. They also work at the legal-end of such merger and acquisition, ensuring their clients faces no legal obstructions and the whole process is rather smooth.

Their other services include merchant banking, researching and risk management.

Tap on the professional banking services in Kolkata

Today you will find many investment bankers in Kolkata and across India. All you have to do is conduct a thorough research to pick a right one who serves your specific industry. They are more than happy to help you scale your business. You just have to be prepared with a winning answer to “why investment banking?”

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