| Topic Name: |
Lots of misinformation |
| Message Name: |
People |
| Date Posted: |
04/12/2000 |
| In Reply To: |
Primarily, sponsors groups are involved with the debt-raising to support highly leveraged M&A transactions. Surprisingly, investment banks do provide M&A advisory support to buyout firms, although it is almost always pro bono work, with the payoff coming in the form of financing fees. Much of the support comes when the buyout firm needs additional industry or transaction modelling support.
Many large LBO firms, like KKR for example, traditionally did not hire undergraduate analyst types. This means that while they have a very sophisticated associate-type doing modelling for them, the legwork that an investment bank can provide is not unwelcome.
So in a typical sponsor transaction, management and a financial sponsor would retain an M&A advisor and a set of banks to line up financing. The Board, or a special committee of the Board, will retain its own advisors for M&A. Then the fun starts. |
| Message: |
I was wondering if all the stuff said about the people in I-banking is true, i.e. are they mostly assholes. I know every company in any industry has a few but is it more prevalent in this industry? I've heard it said that the good guys all quit after a while and only the arrogant ones remain. Any of this true?
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