Investment Bank

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What It Means

An Investment Bank is a financial intermediary that acts as an advisor to parties involved in a financial transaction, such as a merger or Acquisition. Investment Banks typically represent larger companies that are offered for sale through a structured and formal sales process. They tend to be larger and have more resources than a typical Business Broker.

Why It’s Important

Investment Banks are a viable option for larger companies (usually starting about $10M in revenue or $1M in recurring EBITDA). They leverage their vast network to drive interest from many Buyers at once, creating an auction situation that lets the Seller compare multiple offers side-by-side. Like Business Brokers, they will charge a success fee as a percentage of the purchase price.

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