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[http://alvindonovan7.wordpress.com/about/ alvin donovan] - First, let's look at who Investment Bankers are really it is possible to know very well what makes them tick. Most Investment Bankers are former retail stock brokers who started out on Wall Street by incorporating with the major Brokerage Firms.

There job was basically to sign up as numerous accounts as you possibly can and purchase then sell stocks for clients. After that they increased towards the Investment Banking department of these firms.

Investment Banking involves raising capital web hosting and public companies. The larger brokerage firms are constantly searching for new companies. They wish to raise Investment capital of these companies and establish whatever they hope will be a long lasting relationship.

This is a great idea for your Management Team to determine relationships with these firms his or her guidance is very valuable.

Now everyone knows that Investment Bankers Investment Bankers need to make money the same as everybody else, but let's examine a typical fee structure. They usually charge a cash fee of 10% with the amount they raise and 10% of the amount in stock.

If the company is private then they do an evaluation to determine the quantity of shares they are going to receive. These shares are available with Registration Rights. This calls for the shares to be registered with all the US Securities & Exchange Commission, when and if the company becomes publicly listed.

[http://alvindonovan7.wordpress.com/about/ alvin donovan] - Now that may seem like motivation enough, after all if they raise $2,000,000 for you personally company, they get yourself a $200,000 fee and stock within your company also. When they close several deals every year those numbers sure mount up.

However they are not merely in the game for starters time deals. They often need a right of first refusal to improve you subsequent financing throughout the next 12 months should your company require it. They might like to raise money for a similar company A few times within the same year. In case your clients are successful, a purchase Bankers simply employ the identical funding source to maintain purchasing your business.

Investment Banking firms in addition try to get a monthly cash fee for advising companies they represent on securities matters. These tips may include corporate structure or reorganization, search for quality board members, referrals to securities attorneys or auditing firms, along with help and advice to become publicly listed company.

Lastly, Investment Banking firms take part in Mergers and Acquisitions. There are big fees involved in el born area also. They could even recommend your organization purchase another company in the related field. This might turn out to be an extremely strategic move to your company, not to mention a purchase Banking Firm can make its usual fee. But they may also own stock in the other company you will end up acquiring, since they might have raised capital on their behalf at once and helped them to grow.

[http://alvindonovan7.wordpress.com/about/ alvin donovan] - There is nothing wrong with that, it may be a great move to your company to make. I'm just wanting to illustrate that Investment Bankers are highly motivate. They would like to make lots of money the same as a lot of people. The best way they are able to make it happen however, is perfect for them to find good companies that they could raise venture capital for and enable them to grow. Hopefully, your small business is one of those.