Misconceptions & Realities When Hiring an Investment Banker
“Realtors” is American for Business Brokers. With that translation done, here’s Divestopedia’s take on the difference in service when using an Investment Banker to handle the sale of your business vs using a Realtor:
Far too many business owners and executives mistakenly equate the work of realtors to the work of investment bankers. While at the heart of each process is a sales transaction – a home in one and a business in the other – that’s where the similarities end. Let me explain the differences between a realtor and an M&A investment banker.
A realtor will review recent transitions of similar properties in your neighborhood and will set the “ask price” for buyers. An investment banker does not set the ask price and does not put an ask price in the materials. Instead, the buyer makes the initial offer. Misconceptions & Realities When Hiring an Investment Banker (Part 5: Like a Realtor)