Whether you’re scaling your business, planning to sell, or seeking capital to grow, you’ve likely come across the term investment banker. But what exactly does an investment banker do—and how can one help your business succeed?
This guide is written specifically for Australian business owners who want to better understand the value of investment banking services, when to engage them, and how to find the right expert for their needs.
What Is an Investment Banker?
An investment banker is a financial advisor who helps businesses raise capital, sell assets, acquire companies, or prepare for complex transactions. Unlike general financial consultants, investment bankers specialise in large, strategic deals that often involve external investors, mergers, or capital markets.
In Australia, investment bankers operate in a highly regulated and sophisticated environment, often working with private companies, family businesses, startups, or large corporates during pivotal stages of their growth.
Key Services Offered by Investment Bankers
Here’s a breakdown of what an investment banker typically helps with:
1. Mergers & Acquisitions (M&A) Advisory
Investment bankers guide companies through the sale of their business, a merger with another firm, or an acquisition. This includes:
- Business valuation
- Deal structuring
- Negotiating with buyers or sellers
- Managing due diligence
Example: A Brisbane-based manufacturer looking to exit might hire an investment banker to identify overseas buyers and manage the entire sale process.
2. Capital Raising (Debt & Equity)
They assist businesses in sourcing funds, whether through loans (debt), investors (equity), or hybrid instruments.
Common capital raising support includes:
- Preparing pitch decks or investor documents
- Identifying the right funding sources
- Structuring favourable terms
- Liaising with private equity firms, venture capitalists, or high-net-worth individuals
Example: A Sydney tech startup expanding into Asia might use an investment banker to raise $10M in growth capital.
3. Initial Public Offering (IPO) Preparation
For companies preparing to list on the ASX, investment bankers help with:
- Prospectus development
- Financial modelling and valuations
- Underwriting
- Regulatory compliance
- Roadshows and marketing
Example: An established Perth mining firm looking to go public could engage an investment banker to lead its IPO process.
4. Strategic Advisory & Restructuring
They advise on business strategy, especially during turnaround, restructuring, or distressed situations.
- Debt restructuring
- Asset sales
- Cost optimisation strategies
- Finding new strategic investors
Example: A Melbourne retail chain facing financial difficulties might consult an investment banker to restructure debt and attract new backers.
When Should You Hire an Investment Banker?
If your business is facing a high-stakes or high-value financial decision, it may be time to engage an investment banker. Situations include:
- Preparing to sell your company
- Acquiring another business
- Raising over $1M in capital
- Going public
- Navigating a corporate restructuring
Investment bankers provide objectivity, market insights, access to a wide network, and negotiation expertise, which often results in a better financial outcome than going it alone.
Do Investment Bankers Work with Small or Mid-Sized Businesses?
Absolutely. While some only deal with multi-billion-dollar transactions, many boutique and mid-tier investment banking firms in Australia focus specifically on SMEs.
For example, there are investment bankers who specialise in:
- Family-owned businesses in regional areas
- Startups in Sydney, Melbourne, and Brisbane
- Mid-market companies looking to scale or exit
At InvestmentBanker.au, you can find vetted professionals by deal size, sector, or location, making it easy to connect with someone who truly understands your business needs.
How Are Investment Bankers Paid?
Most investment bankers work on a success fee (also called a “contingency fee”) structure. This means you pay a percentage of the transaction value only if the deal goes through. Some may charge a monthly retainer or advisory fee during early stages of engagement.
Always clarify the fee model upfront and ensure it aligns with your goals and timeline.
How to Choose the Right Investment Banker in Australia
Not all investment bankers are created equal. Here’s what to look for when choosing one:
Relevant Industry Experience – Have they worked with businesses like yours?
Deal Size Expertise – Do they handle transactions of your scale?
Track Record – Can they demonstrate past success in similar situations?
Network Access – Do they have relationships with the right buyers, investors, or lenders?
Reviews & References – What do past clients say?
Start Here: Connect with Vetted Investment Bankers Near You
At InvestmentBanker.au, we make it easy for Australian business owners to find trusted, reviewed, and verified investment bankers in their region.
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