The minimum size (bar) of a deal that a investment bank will accept to handle. The bar can be based on either potential fee or potential deal amount. For example, most bulge brackets tend to handle deals worth $300 million or more in size. Of course, the bare can change across markets and from time to time. In normal market conditions, bulge brackets prefer deals larger than $1 billion. Small and mid-size firms may accept bars as low as $25- $50 million. In general, small deals require as much efforts as large deals and generate lower fees, therefore, banks prefer spending their time and resources on mega deals, rather than small ones.
December 5, 2023