Real-Life Communication
"People who enter the investment banking field should be highly
motivated and well rounded. The ability to interact with clients in an effective
and communicative fashion is probably more important than having good analytical
skills," says Marc A. Cabrera. He is an investment banker.
"However,
having a good understanding of financial analysis is critical to being successful."
Early
in your career as an analyst, your boss assigns you to prepare some background
research on three client companies who have asked the firm to assist them
in the IPO (initial public offering, to become a publicly traded company on
the stock market) process. He asks you to present the research at a meeting
of some of the team leaders at the end of the week.
During your research,
you've found that two of the companies are good candidates for an IPO.
But the other is very unstable. You have some doubts about the truth and accuracy
of some of the information they've provided.
For companies A and
B, you plan to recommend that the firm submit a proposal to provide services
leading to a listing on a national stock exchange. Some of the services your
firm brochure states it offers are:
- Business plans in preparation for an IPO
- Merger and acquisition research, contacts, and negotiation
- IPOs, from initial research to ticker symbol listing
- Company valuation for merger and acquisition
- Financing solutions for growth, IPOs
You plan to recommend that the firm decline to work with company
C.
You collect all the relevant research and put it into folders to
distribute at the meeting along with a summary of your findings. How might
you begin your presentation? Which of the above services would you recommend
at this time?