A boutique investment bank is a type of investment bank that specializes in certain industries, in certain geographical regions and usually only in some types of corporate finance, especially in mergers and acquisitions, restructuring and capital raising. They usually assist the companies involved in smaller transactions.
A trusted sell my business broker advised me that turning to a boutique bank instead to a larger bank to finance a merger and acquisition transaction can have many advantages:
- Priority treatment – boutique banks usually handle deals that are of little interest to larger banks and they offer more attention, more personalized treatment to their clients than larger financial institutions. M&A deals usually involve lots of day-to-day activities that can be more efficiently handled by a bank that focuses on the personal relationship with their customers;
- In-depth industry experience – a boutique bank that specializes in the client’s niche might have more insight and experience in handling transactions within that particular niche than larger bans and such a bank might also provide assistance with multiple aspects of the transaction;
- Boutique banks are usually cheaper – the financing solutions provided by boutique investment banks can be cheaper due to their higher level of flexibility as well as due the lower minimum fees practiced.