What is Investment Banking ?
Investment bankers provide corporate advisory services as part of commercial banks themselves or in separate firms associated with banks. They deal with new issues of securities for raising finance, take-overs, mergers and acquisitions, financial advisory services for mergers and acquisitions, capital and debt structuring and restructuring, private capital raising and structured financing.
Most investment banks deal with three main areas:
– Mergers and acquisitions (M&A): assisting clients with expansion in order to increase profitability, safeguard market position, diversify, etc. Investment bankers manage the transaction process, assessing the target organisation and the impact of the deal. This involves knowledge of legal and regulatory issues.
– Debt capital markets: working with lenders such as financial institutions, agencies and public and private companies to support client debt. This includes restructuring debt, refinancing debt and raising new debt.
– Equity capital markets: advising clients on ways to raise capital, how much, from whom and when.