What approach do many companies take when dealing with investment banks during a sale process?

Many companies engage investment banks during a sale process primarily for their expertise in valuation and negotiation strategies. Investment banks are well-versed in financial assessment methodologies, allowing them to accurately determine the worth of a business based on various factors such as market conditions, historical performance, and future potential. This valuation is crucial during the sale process as it guides the seller in setting realistic price expectations and helps in establishing a fair value for both parties involved.

Moreover, investment banks bring significant experience in negotiation tactics. They have the skills to effectively represent the seller's interests, ensure optimal deal structures, and navigate offers from potential buyers. This dual focus on valuation and negotiation is essential for achieving favorable sale terms and maximizing the seller's financial outcome.

The other options, while relevant in certain contexts, do not capture the primary function of investment banks in M&A transactions. For instance, retaining investment banks for legal advice is less common since legal aspects are typically handled by attorneys. Utilizing them for marketing strategies might occur but is not their main role in a sale process. Advising them on internal processes also falls outside the purview of investment banks, which focus more on external market factors and deal execution rather than internal company operations.