A Guide to Investment Banking |
Posted: September 12, 2017 |
Many people become confused when it comes to investment banking. They are not sure on what an investment bank does and how it is different from regular banks. An investment bank is a bank that acts as a financial intermediary between the client and complex financial transactions. It can serve as a financial advisor for institutional clients; play a vital role in corporate reorganisations and mergers. Primary role of investment banks for people & companiesThey act as the principal intermediaries to bridge the gap between money sources and those that are seeking for capital. They can be referred to high- class brokers as they are specialised in the management of monetary transactions that run in millions. When a company decides to sell new equity or securities in the market for raising funds, the investment banker is the sole agent who is responsible for identifying buyers for these securities. The Investment Bank is a middle -man between the company that is selling securities and the public that is interested in buying these securities. The investment bank also advises buyers and sellers on the valuation of business. It helps in the negotiation and the pricing of the transactions that are involved. The investment bank can also play a part in the negotiation process as well. In this manner, the transaction is structured and implemented. Investment bankers also research on equity, and they advise buyers. They are known for their expertise in financial market trends and can counsel prospective buyers. The professionals are also sought after for helping customers increase their wealth. They are specialists when it comes to cash building and wealth management plans. Investment banks –their vital role in company mergers and acquisitionsInvestment banks in the UK and across the world play a very crucial role when it comes to the final phases of company mergers and acquisitions. The onus of preparing the valuation model falls on the representatives of investment banks before the deal is closed. They advise and evaluate the terms of the transaction and guide their clients accordingly. They also play a vital role when it comes to helping companies raise capital. This may take place via equity offerings or debt infrastructure. How does an investment bank earn revenue?The investment bank earns revenue through its advisory services from clients. They also make their income with the aid of commissions and fees from their customers. The representatives here are skilled in the area of finance, and they have the experience in bringing companies to the market. This financial institution differs from its regular counterparts because it caters to wealthy clients, corporations and businesses. Besides catering to clients, investment banks provide a large number of lucrative career options to banking individuals. Top investment banks give them jobs of prestige where the prospects are ravishing. The rewards and the remuneration of investment banks are also good. Top investment banks have branches across the world, and this is why joining one is a sound and prudent choice for several banking aspirants across the globe today!
|
||||||||||||||||||
|