For young high-growth phase enterprises it is critically important to understand investment banking relationships and the different capabilities of various investment banking firms (geographical footprint, research capability, sales force and securities distribution prowess). It is also critical to understand whether or not your company will be materially important enough to deserve the attention of a particular investment banking firm. Following the demise of major Wall Street firms during the 2008-09 financial crisis, having investment banking experience on the board may make the difference between enterprise success and failure. This does not mean having someone whose agenda is to provide investment banking work solely to the firm where they are associated. Rather, a young company might best be served by experienced investment bankers specializing in their industry niche, while mature Fortune 500 issuers will be best served by those having “major bracket” investment banker experience.
Larry Trautman has extensive capital markets experience and expertise. As Senior Vice President of the New York-based investment banking firm Donaldson, Lufkin & Jenrette (now Credit Suisse), he has enjoyed a diverse corporate finance practice, having sole client responsibility for the origination, negotiation and processing of $billions (current market value) of merger and acquisition transactions, and work on public equity offerings for both traded and going-public situations. His other transaction experience includes: venture capital, real estate, public finance, and substantial private debt and equity placement. He taught accounting and finance at several colleges and universities.
Creating a compelling return-on-equity for shareholders and the ability to effectively communicate impressive achievements may prove to be entirely different skills. Communicating a corporate value proposition to existing and potential investors is critically important to the development of a healthy shareholder base comprised of investors who will benefit from enterprise growth over-time. Investor relations is a strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a company, the financial community, and other constituencies, which ultimately contributes to a company’s securities achieving fair valuation.
Over the years, Mr. Trautman has been a member and attended functions of the National Investor Relations Institute. The organization is “dedicated to advancing the practice of investor relations and professional competency and stature of its members”.