Document background
The Investment Bank Engagement Letter is a crucial document used when a company engages an investment bank for services such as mergers and acquisitions advisory, capital raising, or other financial advisory services. This document, governed by U.S. federal and state securities laws, establishes the formal relationship between the parties, detailing the scope of work, compensation structure, and regulatory compliance requirements. The letter typically includes specific provisions required by SEC and FINRA regulations, and serves as the foundational document for the investment banking relationship. It's particularly important as it outlines both parties' rights, responsibilities, and protections throughout the engagement.
