ADVANTAGES WHEN INVESTMENT BANKING BECOMES YOUR BUSINESS PARTNER
An Investment Banker (IB), known as a financial advisor(FA), can offer you professional expertise and insight you may not have. Remember, a financial advisor has the time, knowledge, research tools, and experiences you may need from time to time. They shall bring you a strategic thought or solution that has not been discovered in your company.
Let’s look at the role of a ﬁnancial advisor like the role of a ﬁtness coach. A coach’s role is to ensure you tirelessly work towards your goal. He keeps an eye on your workout regime, regulates your diet and carefully monitors your progress until you successfully reach the target.
What Do Investment Banks Do?
Full-service investment banks offer a wide range of services that include underwriting, M&A, sales and trading, equity research, asset management, commercial banking, and retail banking. They provide advice starting from choosing the ﬁnancial instrument and act as intermediaries between investors (who have money to invest) and corporations (who require capital to grow and run their businesses).
Investment banks serve governments, corporations, and institutions by providing underwriting and mergers and acquisitions (M&A) advisory services. Bankers work with both private and public companies to help them go public (IPO), raise additional capital, grow their businesses, make acquisitions, sell business units, and provide research for them and general corporate finance advice. They also work with private equity firms to help them acquire portfolio companies and exit those positions by either selling to a strategic buyer or via an IPO.
Why do Your Company need an investment Bank as a partner?
Because an IB specialises in providing ﬁnancial advice to customers, based on his expertise and their requirements. IB can assist your company in reaching your long-term goals in so many ways because of:
- Accountability – IB helps keep your company on track by talking you out of making emotional decisions about your financial position. They also provide an independent and fair opinion for you to decide.
- Advice – IB can make suggestions about the best strategies to implement to improve your balance sheet.
- Action – Many people don’t take the steps they should manage their finances because they’re too busy or too uncertain about what to do. Working with IB means someone else can handle what you don’t have time for. You may focus on what is the core value of your business and leave an Investment Bank to empower your cashflow.
- Expertise – They can guide you to better choices than you might make on your own.
- Networks – IB use their extensive networks and relationships to find opportunities and help negotiate on their client’s behalf. Bankers advise on both sides of M&A transactions, representing either the “buy-side” or the “sell-side” of the deal.