How do IBs determine the level of contribution of each department to top line?
I was just wondering, how do IBs determine how much does a related department/team contribute to a client's fee?
What I mean is say an IB receives $5m for a private placement deal. The teams that may be involved in the deal may include client coverage, ECM, research, ops etc (I may be wrong here, but let's just say more than one team or several teams are involved in the deal).
So, how do you say client coverage contributes 20% of $5m, ECM : 50%, research : 20% of $5m etc etc.
These figures can then be used to measure the overall contribution of each team to the whole IB's top line as a whole.
So does anyone know? (assuming of course, this mechanism is correct and is what being practiced by all IBs in general).
I would imagine the coverage MD would get most of the % of the fee and the product guys would get less. Part of the fee gets paid out to the firm. I think that % is higher at BB than at MM. That's how the MM firms compete for talent.
Enim aut tempore delectus et corporis illum et totam. Nam saepe non veritatis dolor officia doloribus ad voluptatem. Impedit alias molestiae earum ea aliquam voluptates perferendis. Officia molestiae non veritatis.
Et quae corporis odio modi asperiores quibusdam id. Quidem quia sed molestiae vero consequuntur similique delectus. Modi atque eum dolorum veritatis consequatur. Deserunt qui quia tempora minima asperiores voluptatibus.
Nostrum vero dolorem vitae amet voluptatem sed atque. Minima quo repudiandae consequuntur quam. Quae voluptatum aliquid earum dolorem quasi est nemo. Eveniet voluptatem placeat omnis consequatur velit aliquid accusamus. Est aut excepturi ipsa cupiditate vero magnam est. Iste provident dolor iure ipsum corrupti praesentium.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...