Bank and adviser selection checklist

Use this before mandating global coordinators and other advisers. Score proposals on the same criteria so the decision can be explained to the board.

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Before the request for proposal 0 / 4

Usually owned by: CFO, project lead

Long list of banks with relevant sector research and venue experience
Research and distribution matter after listing.
Confidentiality agreements signed
Protects information shared in the pitch.
Company information pack prepared (business overview, financials, plan)
Gives all banks the same basis.
Evaluation committee and scoring sheet agreed
Makes the selection objective and documentable.

Usually owned by: Evaluation committee

Market view and IPO window assessment for the sector
Tests realism of timing advice.
Equity story feedback and key investor concerns
Shows sector understanding.
Valuation approach, peer group and IPO discount reasoning
Reasoning matters more than the headline number.
Proposed structure: size, mix, venue, tranches, greenshoe, lock-ups
Reveals quality of advice.
Target investor list and distribution track record
Shows ability to build a quality book.
Named deal team and research analyst, with availability
The people matter more than the brand.
Comparable IPO references and their aftermarket performance
Evidence of outcomes, not only mandates.
Fee proposal with fixed and incentive components
Allows like-for-like comparison.

Usually owned by: Evaluation committee

Scores recorded per criterion for each bank
Supports a transparent decision.
References checked with recent issuers
Issuers give the most honest view.
Conflicts of interest reviewed (competitors, lending relationships)
Conflicts can affect advice.
Pitch valuations not used as the main selection criterion
Pitch valuations are not binding and can mislead.
Syndicate composition and roles planned
Balance distribution, research and relationships.

Usually owned by: CFO, general counsel

Issuer counsel with recent IPO experience on the target venue
Regulator familiarity speeds approval.
Auditor capacity confirmed for audits, reviews and comfort letters
Auditor bandwidth is often a bottleneck.
Independent IPO adviser considered
Balances bank interests for first-time issuers.
IR and financial PR advisers shortlisted
Needed before the intention to float.
Data room, printer and registrar providers selected
Logistics on the critical path.

Usually owned by: General counsel, CFO

Scope of services and deliverables defined
Prevents scope disputes.
Fee structure, caps and incentive fee mechanics agreed
Controls cost and aligns incentives.
Expense reimbursement caps and approval process agreed
Expenses can grow quickly.
Termination rights and break fees reviewed
Matters if the IPO is postponed.
Exclusivity and future mandate clauses reviewed
Avoid unnecessary commitments for follow-on deals.