Aligning Investment Banking Fees with Client Interests

As a boutique investment bank, we expend a lot of effort providing high quality advice and service to our middle-market investment bank clients. We understand the need to align our investment banking services and fees with our clients’ interests, because ultimately, we act as our clients’ advocate. Completing transactions is difficult; we need to be working together. The following is a brief primer related to investment banking fees.

Retainer A credible middle market investment bank will charge a non-refundable retainer. There are two primary reasons for the retainer: (1) it covers the time and expense incurred in preparing the client to go to market and (2) it serves as a screening mechanism to ensure that the client is committed to the transaction. This retainer may be paid as a lump sum, over time or based on achievement of certain activities associated with the transaction process. This retainer should represent a minor portion of the overall fee. Sometimes retainers or portions of retainers are credited toward the success fee.

Success Fee The success fee, representing the majority of compensation, is tied to successful completion of a transaction and is structured as a percentage of the deal size. For capital raises, a fee percentage is applied to the amount of capital raised. The fee percentage increases as one moves from raising senior debt (perceived as less risky and ranges from 1%-2%) to junior debt (more risky) to equity (perceived as most risky and ranges from 5%-10%). Some fee arrangements include an “equity kicker” in the form of warrants. The size of the deal may also influence the fee percentage; the larger the deal the smaller the percentage. For merger and acquisition services, the fee percentage is applied to the overall size of the transaction. Although many business brokers refer to the Lehman formula, few mid-market investment banks use this structure. Instead, they may quote a straight fee percentage or a performance based progressive fee, which increases based on achieving a certain valuation target. The higher the companys valuation (the more dollars the seller puts in his pocket), the higher the investment bankers fee percentage. Progressive fee arrangements provide a strong incentive for the investment banker while aligning the parties’ interests in maximizing the value of the transaction to the client’s owners.

Marketing Campaign How To Come Up With One

Any business will never be able to survive without any form of marketing. But staging a marketing campaign isn’t easy. If you aren’t careful, it can bring your business down and drain all your finances.

To come up with a foolproof marketing campaign for your business, take note of these tips:

1. Create a marketing plan. What’s the main use of a marketing plan? With it you can answer the following questions:

The Benefits Of ITIL Certification For A Career In IT Services

The ITIL Certification has become a good standard for everyone, who works in the IT industry. Nowadays, it is not enough to only have job experience or an academic background in IT. Many organizations now only hire professionals, who have the ITIL Certification because it shows that they are highly qualified.

The ITIL Certification stands for IT Infrastructure Library Certification, and it is a set of standards which are set for all IT related operations in the IT industry. This certification is accredited by the Information Systems Examination Board and they are responsible for preparing all those potential candidates, who wish to pass this certification.

Many people think that it is not necessary to go for this certification but that is a big misconception. The ITIL Certification offers a number of benefits. It is a great option for beginners or advanced IT professionals because it lets them know the standards and framework, that is expected in the IT industry. Moreover, people who go for this certification know all the IT related jargon which they would otherwise be unaware of.

Marketing Management Process

Marketing Management is a business discipline which is focused on the practical application of marketing techniques and the management of a firms marketing resources and activities.

Marketing trend is the most of the business units make the production in the anticipation of demand. In these circumstances, if the insist dose not takes place according to the expectations in the fixed period, and then individual efforts are to be made for this. It is clear that the extent to which the sale is more to that extent the working capital cycle will also be speedy and the profitability of the unit also increases. In short, the power of the business unit and long life depend on the sales. In the same way the employment opportunity arises due to growth of the business.

The activity of entire useful services necessary for the business activities increases and as a result the economic development of the country also becomes possible. Thus, the sales activity has a special importance. In the developed countries about 50% and in developing countries about 20 to 40% of employed personals are engaged in marketing activity. So, it is necessary to put special weight age on the marketing management process.

Software encryption status quo and development trend of the industry

Software developers usually use some kind of encryption technology to protect their software to prevent illegal use. Also need software encryption software is authorized to purchase content, in order to maximize the sales profit.

Software encryption technology is divided according to whether the use of a dedicated hardware-based encryption hardware and software-based encryption. Hardware-based encryption, encryption need to bind with a dedicated hardware device, the hardware encryption encryption locks, commonly known as a dongle. Software-based encryption, encryption does not require dedicated hardware, general binding digital license with the the terminal device hardware and software information, also known as the electronic authorization forms.

Simply think drive-based hardware encryption security than software-based encryption is not correct, because the more involved in software security, including encryption products, security, encryption policy design, application software, operating systems, , hardware, data communications, and so on, is a comprehensive technical areas, not simply by a to determine whether security.