"Investment Banking is 10% Financial Analysis and 90% Psycho-analysis" – André Meyer  This blog is about the "other 90%"…

Credibility Account

Midmarket investment bankers, if they are worth their salt, are paid to cause pain. Let me explain. Negotiation, when the stakes are high, is unavoidably a painful process.  It involves give and take and what has to be given (price concessions, risk reversal, commitment) are painful to the party doing the giving.  Therefore, the parties […]

Engineering Firm Value – September 2013

Dear Firm Value Blog Reader, Welcome to the first issue of the Engineering Firm Value Newsletter.  This is the sister publication of Firm Value, that in different forms and languages we have published since 2006.  If you like this newsletter, check out archive copies here: http://en.imapmb.com/firmvalue_archive.php If you enjoy reading it half as much as I […]

Knee-Jerk Reactions

One of the main jobs of an Investment Banker is to fight knee-jerk reactions. No, I don’t mean binding the legs of the buyer and seller to their chairs… or arranging negotiations in deep sand.  It’s all about managing expectations on both sides to avoid destructive over-reactions that can, in the heat of the moment, […]

Industry and Frugality

I have been listening to Ben Franklin’s biography in my car and noticed two words regularly mentioned as being Franklin’s core principles.  Franklin believed that the way to riches was to work hard and save hard.  Working hard meant for him not just long hours and diligence, but to be totally absorbed in his work […]

Investing the Family Silver

I was talking the other day with a former client (let’s call him John) whose highly profitable service company we had sold in a management buy-in a few years ago.  As with many entrepreneurial clients, we have found to have a lot in common and became friends over the years.  I knew he had been […]