An investment banking engagement letter is a crucial document laying out the terms of services between an investment bank and its client. It covers the scope of work, timeline, fees and expenses, confidentiality, and other key details. This article analyzes the core sections and wording that make up an effective investment banking engagement letter example.
Defining the Scope of Work
[Detail here the typical services covered like M&A advisory, capital raising, financial advisory services, valuation analysis, etc based on the specific client situation]
Establishing the Time Frame
[Provide details on duration of the engagement, key milestones, and timing considerations]
An investment banking engagement letter allows both the bank and client to agree on expectations. Key sections cover services, fees, confidentiality, time frame, and other responsibilities.