Working with Investment Banks

The evolution of investment banks from largely advisory to largely capital driven institutions has created the need for “old fashioned” value advise without risk of conflict of interest. Devon works with managements on value advisory projects that are too “raw” and unformed or too sensitive to share with the client’s investment bankers. Over the years, Devon has worked with virtually every major investment bank on Wall Street and the City of London. When ideas emerge from the Devon process for investment bank review and execution, they are well defined and documented and thus efficient for the banks. To assure that our service is practical for our clients and efficient for their investment bankers, Devon uses all standard valuation methodologies to provide a context in which the valuations generated by our value curves can be understood and exploited. Such methodologies include, but not limited to:

• Cost of capital analysis using the Capital Asset Pricing Model (CAPM)
• Discounted cash flow analysis (DCF)
• Trading comparable multiples
• Precedent transaction multiples

Devon’s clients observe that our services are supplemental, not competitive with investment banks.