Investment Banking Archives - Financing Gazelles

Investment Banking Fees Vs. Consulting Fees

December 27, 2016April 24, 2024 by Chris Risey

Chris Risey

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%…

Investment Banking Fees Create Conflict Of Interest

May 13, 2009April 24, 2024 by Chris Risey

Chris Risey

Yesterday we published a new article at CFO.com, which discusses how investment banking fees can corrupt the advice they give clients. The same day a report, in the WSJ cites issues of conflicts of interest regarding Goldman Sachs. Read our article titled, Investment Banking Fees Create Conflict of Interest White…

VCs want bail out money? Really?

April 22, 2009April 24, 2024 by Chris Risey

Chris Risey

The WSJ reported that VCs are lobbying the government to get access to SBA funds from which they are currently excluded. What the article didn't mention was that this exclusion only applies to companies that are majority owned by VCs. That is they own more than 50% of the ownership.…

Hey Where Did Everybody Go? What Happened To All The IPOs?

February 18, 2009April 24, 2024 by Chris Risey

Chris Risey

Back in the late 1980’s and all of the 1990’s promising growth companies could raise $20-$30 million in equity capital and go public with well recognized names like Prudential Securities, Alex Brown, Salomon Smith Barney and many others. Since then the number of IPOs has dropped considerably particularly for companies…