Let's say a BB IB takes on a multi-billion equity offering as a bought deal. I know they're liable if they can't successfully market the deal. But let's say that's the case, they're billions in the hole, and would they even have enough cash balance / or liquid assets to take on multiple deals? Would it be a huge risk for them?
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Bought deals generally aren't multi-billion offerings.
So hot IPO's like FB, Uber, etc. are usually on a best efforts basis?
Yes. I might be wrong, but I think the largest bought deal ever is around $4B. Additionally, with these hot IPO's, there is not much trouble selling everything.
IPOs could technically be bought, but they rarely happen. There's too much risk surrounding pricing.
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