Investment Banking Jobs At Boutique Firms

The Imarticus team felt quite proud this week as the Economic Times  featured the country’s top 5 boutique investment banks and their journey so far. Reshma Krishnan, our IFAP program ’s head faculty, is an alumnus of Avendus Capital which took center stage in the article.

It was during Reshma’s five year stint with the firm that she realized the need for professionally trained Investment Banking analysts to fulfill the needs of boutique firms like Avendus Capital, Mape and the host of boutique firms out there that cater to rising need of mid- market firms not catered to by bulge bracket investment banks.

Investment banking jobs in boutique firms are among the most sought after because unlike being an analyst in a bulge bracket firm, the boutique firm analyst is part of the entire deal, from origination to execution to closure, thereby gaining exposure to all crucial aspects of a transaction.

In bulge bracket firms, the analyst is predominantly involved in collateral preparation and hardly ever sees the client. But what do analysts do in an investment banking job in a boutique bank?

If you refer to our earlier post on the difference between the buy side and the sell side, you will understand the role the investment bank plays during a transaction. To summarize, a sell side transaction is where an investment bank represents the client who is selling an asset or raising funds by selling equity. A buy side is, as the name suggests, a client who wants to buy an asset or infuse equity, or buy a stake in a firm. Boutique firm clients can be corporate or private equity funds and many boutique firms specialize in mergers and acquisitions (M&A), and private equity (PE) fund raising for corporates.

In any M&A or PE sell side situation, this is the typical process:

Planning and Preparation

Goal Gain clarity on business objectives and how they map to market realities

Key Deliverables Clear definition of M&A criteria or fund raising requirements and valuation expectations

Analyst role – Read more in our earlier article

Marketing and Prospecting

Goal Create deal possibilities by mapping the market, identifying a target universe and reaching out to prospects

Key Deliverables Qualified list of targets that are interested in participating in M&A or PE Process

Analyst role Meet client, acquire and analyze information, create Information Memorandum and other documents. Start help populating the Due Diligence room

Evaluation and Prospect Finalization

Goal Create shortlist of candidates with whom we can close a deal if we converge on valuation and terms

Key Deliverables Adequate number of buyers or sellers with whom a deal can be closed

Analyst Role Identify potential partners and create and maintain buyer/funder tracking list

Bid

Goal Make an offer or receive offers that balances out appropriate negotiation tactics and dynamics of the situation on the other side. Get multiple term sheets

Key Deliverables Exclusivity with best available option

Analyst Role Analyze data to help team negotiate the best offers; continue populating the DD room

Due Diligence

Goal Help co-ordinate due diligence, Assess all existing and potential risks with the business (financial, operational, etc.)

Key deliverable Make sure Diligence goes smoothly and mitigate all risks

Analyst role Co-ordinate Due Diligence

Documentation

Goal Document final commercial and legal terms and conditions through appropriate legal documents

Key Deliverables Share Purchase Agreement, Disclosure Letter, Escrow Agreements, etc

Analyst Role Arrange meetings, gather data to support negotiations

Closing

Goal Coordinate closure of conditions precedent, flow of consideration and exchange of shares

Analyst Role Be on ground resource to team

Our IFAP program equips analysts to handle all parts of the process from valuation, collateral preparation, to documentation.