Investment Banking Deal Toys FAQ | Altrum Comprehensive Guide (2024)

FAQs

What is a deal toy in investment banking? ›

A deal toy (also deal gift, lucite tombstone or financial tombstone) is a customized memento or gift that is intended to mark and commemorate the closing of a business deal in finance or investment banking.

If it wasn't already confusing enough that financial tombstones and deal toys refer to the same thing, they are also sometimes called 'deal gifts' or 'Lucite tombstones'. They are called deal gifts because some companies would rather distance themselves from the term 'toy'.

They are often created by investment banks and given to the deal team, which can include bankers, lawyers, and clients as a keepsake after the completion of a significant transaction such as a merger, acquisition, public offering of stocks or bonds, business restructuring, and investment funds.

What Is a Tombstone? A tombstone is a written advertisem*nt of a public offering placed by investment bankers who are underwriting the issue. It gives basic details about the issue and lists each of the underwriting groups involved in the deal.

HOW MUCH DO DEAL TOYS COST? Deal toys cost anywhere between $75 to $250 or more, with most companies spending $125 each on average.

Deal toys, those commemoratives usually made of crystal or Lucite that celebrate successfully completed financial transactions, actually have several recipients and serve several purposes.

Financial Tombstones (also see deal toys) are customized gifts that commemorate the closing of a major business deal in financing, investment banking, or real estate.

Granite and marble are the most common materials used for headstones, although they can be expensive to mine and ship. The distinctive patterns and carvings on each tombstone are the work of expert artisans. The necessity for individualization also contributes to the overall price tag.

The name springs from the simple, unadorned newspaper announcements of completed deals, so-called “tombstone” ads, that were required under the Securities Act of 1933. However mismatched, the name stuck, even to the point that some bankers refer to financial commemoratives simply as “stones”.

Yes, lawyers do, in fact, get deal toys. That's been the case since the practice of giving out deal toys first took root among investment bankers and dealmakers back in the 1970's. But that's probably not the most relevant or illuminating question here.

What does a toy buyer do? ›

Toy buyers assess and purchase toys for retail sale. They decide which toys make it or do not make it on to the shelves of stores. This gives them enormous financial responsibility, especially around the winter holiday shopping season.

When pricing used toys for resale, you typically want to charge anywhere from 50% to 70% less than the retail price. But this can depend on the toy's condition and whether it's a vintage or collectible item.

The buy side is all about analysis, purchase and investment. On the sell side, companies are looking to create liquidity, build relationships and raise capital. In this case, it's through M&A deals. The sell side is all about promoting, generating interest and getting buyers.

Robertson Stephens was among the "Four Horsem*n" firms devoted to technology deals in Silicon Valley along with Hambrecht & Quist, Montgomery Securities and Alex Brown.

A Merger and acquisition (M&A) Tombstone is a commemorative trophy or plaque that marks the successful completion of a merger or acquisition deal. These tombstones serve both as a memento and as a marketing tool, showcasing the involved parties and key details of the transaction.

In simple terms, a 'deal team' represents the various personnel from within the investment bank executing a transaction.

This process starts from the deal ideation, which involves understanding the objective of a business transaction and comprehensive research to identify the right targets/buyers, followed with months of activities involved at every step, and is finally completed at the deal closure phase.

A deal, also known as a trade, is the name given to any forex transaction. The most common deal is a spot contract, a purchase or sale of a foreign transaction based on the exchange rate at that current moment. Other deals include forward contracts, window forwards, limit orders, stop loss orders, and fx swaps.

A deal sheet is a document that provides an overview of the key terms and conditions of a business transaction or deal. It typically includes information such as the parties involved, the nature of the deal, financial terms, important dates, and any other relevant details.