Marc Cooper is the Chief Executive Officer of Solomon Partners, a leading investment banking advisory firm founded in 1989.
The economy doesn’t need to be in a full-blown crisis for uncertainty to take hold. A shift in U.S. trade priorities, geopolitical turbulence, conflicting data points and a market searching for direction are more than enough. In that kind of environment, the role that investment bankers play in advising clients changes. It’s no longer just about executing transactions—it’s about exercising judgment. And judgment, in turn, is built on trust.
When Steady Guidance Matters Most
When the economic landscape shifts, clients seek advice not from the loudest voice in the room or the firm with the flashiest pitch deck, but from those with deep knowledge, steady hands and a track record of saying what needs to be said, not what someone wants to hear.
That dynamic reshapes how financial services firms operate. In my experience, the best investment banks never lose sight of the client. Relationships, not deal books, are the bedrock of our business. And the hard work of relationship building—done in both good times and bad—pays its biggest dividend when the cycle turns.
When markets are booming, investment banking can feel like a commodity. Anyone can sell a company in a seller’s market. But in difficult environments—when volatility spikes and capital dries up—that’s when sector expertise and sound advice matter most.
These aren’t abstract ideals. We recently advised a consumer-facing company grappling with brutal tariff costs. The outcome wasn’t a splashy M&A transaction. It was a tough, clear-eyed decision to operate at breakeven for a year, absorbing pain to hold market share and protect long-term customer relationships. That’s not advice every banker is willing or equipped to give. But it’s exactly the kind of guidance that builds enduring client relationships over the long haul.
Building The Kind Of Trust That Endures Hard Times
What underpins such trust is a mix of domain fluency, broad strategic perspective and unflinching candor. Best-in-class bankers lead in their sectors. They don’t parachute in; they’re embedded, with a command of the trends, players and shifting forces that shape outcomes.
Equally important is the ability to think beyond the transaction. We’re not in the business of forcing deals. A good outcome might be a sale, a financing, a partnership—or a disciplined decision to do nothing. Having the clarity to recommend inaction, when appropriate, requires a level of confidence and alignment with the client’s best interests that isn’t always present in this business.
Clients count on financial advisors not just for optionality, but for clarity. Quality bankers aren’t afraid to say when valuations are unrealistic or when the best move is to stay on the sidelines. There’s nothing that binds a client relationship more tightly than sound advice in a tough moment—especially when it proves right over time.
Private equity clients often prioritize flow: the deals, the dollars, the execution. But in moments like these, what they value most is insight, rigor and a sense that we’re thinking with them, not just selling to them. That’s what differentiates the best investment banks from the rest. It’s not our balance sheet that defines us; it’s our intellectual capital. And when the market is off its axis, that’s precisely what matters.
The Power Of Showing Up
The firms that will emerge stronger from this period aren’t necessarily the ones that do the most deals. They’re the ones that show up when no deal is happening. The ones that help clients think clearly, move deliberately and prepare for the rebound.
As one of my mentors liked to say: The best players know how to move without the ball. In moments like these, when certainty is scarce, trust becomes the hardest—and most valuable—currency of all.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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