90% of what you're buying when you bring an IB firm to help with your IPO is the name. Why? Because the name has value, it helps sell stock.

I have a good friend who is a COO a very successful start-up. He said "When we IPO you better believe we're getting Goldman to do it".

It's a free market, no one HAS to use these IB firms and take a 10% haircut on the money they raise. However, they choose to do it.