Dear Reader,

Over the years, investment banking has been used to describe an interesting array of services, from mergers and acquisitions to providing access to buyers, sellers and investors, to making a market for an initial public offering. However, in its purest form, investment banking should be about advising a client on a strategic direction for the purpose of creating wealth, whether for the company or its shareholders. Unfortunately, my profession lost its way in the past several years and has become much more transactional and less about advising the client.

Certainly in some circumstances, transaction-oriented services are appropriate, but in my view there is no room for transactional thinking as a characteristic of an investment banker. An investment banker should be able to help a client think through strategic challenges that might impact a market’s perception of the company long before an engagement has been formalized.

While there are certainly excellent investment bankers out there, there is a real deficiency in strategic-thinking investment bankers for lower-middle market companies below $100 million in sales. It is my belief that this is where the best investment bankers are needed most. Small businesses drive the economy and are facing their toughest challenges right now.

I have had the privilege during my career to be asked to be a key advisor to our lower-middle market clients, whether serving on their board of directors, board of advisors or just as an informal advisor. As an advisor serving in these roles, I get the opportunity, not to mention I have the obligation, to work alongside our clients rather than as a vendor. This has built some very strong relationships and, to me, that is an investment banker.

I hope the next year proves successful for you both personally and professionally.

Chip Measells
Partner

1776 I Street NW, 9th Floor • Washington D.C. 20006
p. (202) 661-4691 • f. (202) 661-4611• www.wyattmatas.com