An investment banker’s job is to analyze companies in order to provide advice on mergers, acquisitions, valuations and capital raising. When analyzing two companies, an investment banker would typically examine the companies’ financial statements, business models, management teams, growth prospects and risks. The analysis aims to determine each company’s value, growth potential and suitability for the intended corporate transaction.
understanding the companies’ businesses and strategies
The investment banker would conduct in-depth research on each company’s products, services, target markets, competitive advantages and business strategies. This provides insight into the fundamentals behind each business and its potential going forward.
In summary, when an investment banker analyzes two companies, the focus is on valuing the businesses, assessing strengths and weaknesses, and determining the advisability of bringing the companies together in an M&A deal or capital raising.