Research and Investment Banking Participation in Joint Due Diligence


This practice notes discusses joint participation by research analysts and investment banking personnel at the same firm in due diligence conducted for public offerings of securities. In a capital markets transaction, investment bankers and research analysts can each help to determine if an offering document has adequate disclosure by attending due diligence sessions with the company or third parties. Although it is efficient for them to attend the same session, investment bankers and research analysts working for the same firm have historically been subject to conflicts of interest that could lead to misleading or inaccurate research reports on a client company.