Investment Banking Fees Vs. Consulting Fees

Investment bankers typically raise capital using one of two formulas.  These formulas are referred to as the Lehman Formula, or Double Lehman Formula, and are calculated via the incremental dollar value of the capital raise – typically a percentage descending from 5-10% for the first five million, and thereafter a 1-2% percentage of the remaining capital raise. The first million dollars raised using a “finder”, “investment banker”, “broker” is 5%-10%, the second million dollars raised is 4%-8%, the third million dollars is 3%-6%, the fourth million dollars is 2%-4%, and the fifth million and beyond is 1%-2% of the capital raise.  […]

What If We Eliminate Late Fees?

The Weekly What If…Chronicling companies that transformed their business by Exploring What if Praised for its clever business model, it was really this What if that started its massive growth.  Based on its market value and number of customers, there is a good chance you use, Netflix. I do. Their mail order driven business model kicked Blockbuster’s drive up business to the curb! Since its meteoric rise the company has garnered a huge valuation and the esteem of strategic thinkers like the authors of the Blue Ocean Strategy for its ability to take a completely new approach to video delivery. […]

Weekly What If: What If We Change The Revenue Model

20 Year Old Software Company Unlocks Explosive Growth with this “What If” A small, well respected technology provider (name witheld) had logged years of constant technology innovation for its bank and retailer customers. As an example, this company was one of the first to enable instand credit and credit card applications directly from the department store counter. That type of continued innovation led to steady growth and a marquee list of customers. However, despite their technology achievements and customer satisfaction, the company was still relatively small and appeared to lack much real growth potential. A big challenge for the company […]