Sell-Side IB Buyers' List
Hey Everyone,
I recently started at an Boutique Bank that caters to lower and middle market companies. I am currently doing mostly sell-side Investment Banking work. One of my tasks during my first week was to put together a list of potential buyers - both financial and strategic.
I was asked to collect about at least 50 buyers. My Associate had advised me to use Google and Capital IQ to screen for buyers - which I did. However, I noticed that this is a very inefficient process as it requires a tremendous amount of time.
Since these are lower middle market companies (think EBITDA 20mm), I often times need to include smaller private companies/competitor found through Google since there is a lower chance of interest from large firms.
Is there a "industry standard" or "best practices" when screening for buyers? Maybe I am still slow at doing it since this is my 1st week at the job.
Thanks for your inputs.
Frankly, while it sucks there's not much you can do about it given you likely don't know the industry very well. Fortunately once you have done it once it sounds like you will likely rehash the same list over and over again with a bit of editing so it will get easier going forward.
this sounds almost verbatim like what I did at the boutique i was at this past summer. You don't happen to be V---t Capital, are you?
Probably no short cut for identifying the likely strategic buyers. But two things are odd here: - you seem to be ruling out large cap buyers of this asset you're selling, when in fact strategic acquisitions involving a large acquiror and a small target are more the rule than the exception. so you should absolutely have big companies on your list, assuming there is strategic fit - something is strange if your firm has zero institutional knowledge of financial buyers, and you are putting that list together from scratch.
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