What is the difference between a Buy-side investment bank and a Sell-side investment bank?



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When two companies merge, they must employ their own Investment banks as they hire their own lawyers. Is there a clear distinction between the buy side and the sell side banks? Do the nature of their work differ a lot from each other?

1 Answer(s)


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In a M&A situation, the bank that represents the seller is the sell-side bank and the bank the represents the buyer is the buy-side bank. Investment Banks provide both kinds of services.

In terms of the nature of work - buyside work is more analytical since you will have to run various financial models to understand the target companies valuation, synergies etc.

Sell side work is very 'sales' oriented since you will be creating presentations and other marketing materials to sell the company. There is also a small amount of analysis involved here.

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