A Look At Investment Banking Services

1. A Look At Investment Banking Services When putting their money and efforts into investments, investors need intermediary assistance and guidance in order to gain the best and most profitable results. This is where investments banks come into the picture with their convenient investment banking services. So, what are investment banking services mainly comprised of? (i) Raising Capital An investment bank can assist a company in raising funds to achieve objectives such as acquiring another company, reducing debt load, expanding existing operations, project financing, etc. As part of their investment banking services, the investment bank will work with the client to structure the transaction to meet specific objectives while being attractive to investors. Sales and Trading These investment banking services are primarily relevant only to publicly traded firms or firms which plan to go public in the near future. Specific functions include making a market in a stock, placing new offerings, etc. Trading activities such as, for example, foreign currency trading in India has to be done according to strict RBI rules. But it should be noted that the biggest secondary market is the market for foreign exchange. Here, approximately $5.5 trillion of currency is traded every single day. Foreign currency trading in India is a growing sector and investment banks are sure to be able to advise investors in these matters, especially companies partaking in foreign currency trading in India. (ii)

2. (iii) Acquisitions and Mergers Investment banks often represent firms in mergers, acquisitions, and divestitures. Under their investment banking services, the bank should provide a thorough analysis of the entity bought or sold, as well as a valuation range and recommended structure. Advisory Role Investment banks in advisory roles work on strategic planning, business valuations, financial restructurings and providing an opinion as to the fairness or unfairness of a proposed transaction. As mentioned before, they can even advise firms on matters such as currency trading. (iv) What To Look For In Investment Banking Services Services Offered: Investing banking services should include detailed and insightful financial reports, preparation of relevant documentation, negotiating the terms of a transaction, coordinating with legal and accounting and assisting in all phases of the project to ensure successful completion. Experience: An investor may select an investment bank that has some background in a specific industry segment, has senior members active on a project or a wide network of relevant contacts. Fee Structure: It is important to utilize a fee structure that aligns the investment bank’s incentive with your own. Record of Success: While it is not possible for any reputable investment bank to guarantee success, the investment bank must have a demonstrated record of closing fruitful transactions.

3. An investment bank has a vested interest in making sure that a project is completed in an efficient time frame and with terms that provide maximum value to the client. Though an experienced investment bank adds significant value to a project, it is wise to explore the investment banking services of many firms before choosing to go with one.