Abstract: Small and mid-sized companies looking to raise capital intuitively turn to investment banks for help. In fact, many growing companies view working with a well known investment bank as an attractive milestone that signals their company's success and future potential. However, CFOs should be aware of the significant fees involved when working with an investment banker, and more importantly, investment banking conflicts of interest which can undermine the best interests of the company. This white paper describes investment banking fees and services, common conflicts of interests, and suggests an alternative approach that has worked well in other professions.
May 2009