Investment Banking Advisory
The world landscape has changed dramatically as a result of technological advancements. Companies must adjust to these developments in order to survive in a cutthroat market. By selling securities, private companies can generate more money and become publicly traded. An Initial Public Offer is what this procedure is called (IPO). An IPO has benefits in addition to offering securities to the general public. A private firm must get investment banking advisory when it goes public. A merger would be ideal if a firm wishes to enhance its overall performance in the market. M&A advice services would be necessary, hence a third-party consultant would be needed.
- Advising Services for Investment Banking.
- Advice Services for M&A.
- Purchase services on demand.
- Services for fund raising and divestment.
- the beginning of deals.
Investment Banking Advisory - An Overview
The foundation of global M&A advising services is provided by investment banks. These banks must be set apart from conventional retail banks. An investment bank provides distinct services than a retail bank. The services offered by the retail bank include receiving deposits, disbursing loans and credit, mortgages, and acting as a clearinghouse for customer checks.
When handling IPO transactions and M&A transactions, investment banks serve as both a merchant and a broker.
Services offered by an Investment Bank
Increasing Capital Requirements
A company’s capital raise is one of the investment bank’s main services. The counsel of an investment bank is necessary to fund a project when a company wishes to raise money for it. Reducing debt is one of the tasks an investment bank performs when a firm has a significant amount of debt. The activities of investment banking advisory services also include the raising of equity and other forms of financing for a company.
M & A Advisory Services
In addition to managing corporate finance activities, investment banks provide complex M&A transaction advice. The majority of investment banking services involve providing M&A advice services to businesses. Within the heading of mergers and acquisitions, some advice services include:
Services for due diligence.
consultancy services prior to and after transactions.
Buyer Side Counseling.
Buyer Side Advice.
Businesses that need to raise funds often turn to options like initial public offerings or primary offers (IPOs). Securities are offered to the public through an initial public offering (IPO) on a stock market that is governed by a securities regulator. The Securities Exchange Board of India oversees stock exchanges in India (SEBI). The key authority to request authorization to raise funds from the public is the SEBI. Investment banks support businesses not only with initial offers (IPOs), but also with secondary offers and issues.
Strategic Advice Services
The valuation techniques used by a corporation when it combines with another company are typically included in these services. According to the International Standards of Valuation, a corporation must follow certain accounting and valuation standards. Accounting standards must follow IFRS. In India, a merchant banker or chartered accountant who is registered with SEBI would handle the valuation operations. Investment banks also provide additional services, such as strategic planning, corporate restructuring, and liquidation, in addition to valuation. Investment banks are essential for managing global pension funds and carrying out asset management activities.
What are the objectives of M & A Advisory and Investment Banking Advisory?
The objectives of the above services are:
The intermediary role of investment banks in connecting businesses and investors. The company’s financial situation would be helped by advice from an investment bank. The business would also be aware of how to balance its needs with those of its investors.
An investment bank helps the buyer and seller conduct a smooth transaction.
The likelihood of a successful merger and acquisition deal between the buyer and seller will increase if M&A consultancy services are used.
The investment bank or outside consultant will take care of regulatory compliance, so the parties to a deal won’t have to worry about it.
The investment bank will perform extensive pre-merger, due diligence, and post-merger inspections that have an impact on the deal.
The company’s reputation will improve if the above services are performed by a reputable management consultant. Using a consultant will help the company’s reputation.
One of the top management consultants offering the aforementioned services is KRA. You will be guided by our team of professionals throughout the M&A process. We provide smooth guidance to your business on how to raise money from the public through main and secondary securities issuance.
M & A advisory services
We offers services that are specific to the needs of the client depending on the type of transaction between the parties. We provide services that pertain to both buyer- and seller-side transactions. We provide guidance on the entire transaction in complex mergers. Based on their needs, we offer strategic guidance to the buyer and seller in acquisitions. We coordinate with outside agencies for an IPO to make sure there are no delays in releasing your company’s securities to the public.
In addition to the aforementioned investment banking advisory services, we also provide comprehensive advice tailored to the needs of the interested party.
Sellers Side- Target or Acquired Company
In an acquisition transaction, the parties involved are the buyer, the seller, and the target. We assist the seller in the following:
Make sure that valuation techniques adhere to the global norms that are acknowledged everywhere. We advise using a chartered accountant or a merchant banker who is registered with SEBI for the appraisal process. This is the standard procedure used when providing valuation services for your asset or company. In addition to this, we will create a plan to direct you through the entire procedure.
We will help you create all the necessary documentation. This will involve drafting the company’s information memorandum and the term sheet for the merger and acquisition agreement. The business might use this to make sure your transaction is marketable.
In order to discover possible buyers for the aforementioned transaction, we would additionally perform research and analysis.
We will find a potential buyer who suits the demands and transactions of your firm according on your specifications.
Buyers would be contacted via a private acquisition procedure to submit formal bids. To proceed with the transaction, we will decide which buyer made the highest bid.
In the method described above, we would also set up the backup software and perform data room procedures. The data room procedure must include the following steps:
- a) Protecting all data room-related papers and information.
- b) Ensure that servers are used to backup the data.
- b) Making certain that the systems are sufficient to support recovery and disaster management software.
In addition, we manage post-transaction negotiation.
Buyer Side Transaction- Acquiring a company
The firm acquiring a target is the buyer in a private purchase transaction. We give the client objective advise about buying the target firm.
Some of the services which we provide are as follows:
Make sure the target has no post-transaction or finance difficulties.
the target is subjected to the following due diligence: financial, commercial, and tax due diligence.
locating potential prospects for synergy with the target to guarantee a smooth transaction between the parties.
drafting contracts like the private treaty sale agreement and associated paperwork.
formulating the contract’s terms of sale.
helping you with important terms of the private acquisition deal, such as the exclusivity clause,
Other conditions that regulate the private acquisition transaction include the Material Adverse Change (MAC) clause, indemnity clauses, and others.
deciding on the transaction’s financing choices, such as equity or debt financing.
Investment Banking Advisory Services
Our advising services for investment banking would primarily encompass transactions involving strategic financing, initial public offerings, research, fund management, and capital raising.
We provide the following services:
According to your requests, research data on firms is compiled and given. If you wish to comprehend the market’s strengths, this information is helpful.
Services for Portfolio Management
Also, we offer asset and portfolio management services for mutual funds and securities. A portfolio is generally thought of as a collection of several investments that offer the appropriate rate of return. We offer guidance on wise investment choices that will maximise the return on your money.
Together with the aforementioned types of assistance, we also offer regulatory compliance and advice in accordance with the Companies Act of 2013, the SEBI Act, and other pertinent regulations.
Who can use M & A Advisory and Investment Banking Advisory Services?
We provide the above services to clients engaged in banking, software, and lending companies. Our services are provided to clients, mainly in the following sectors:
Non-Bank Financial Institutions (NBFC).
Applicable Regulation for Investment Banking Advisory and M & A Advisory
Different laws regulate the above services—however, the main laws are:
Mergers and acquisitions are governed under the Companies Act of 2013 and prior company laws. The corporations act regulates all agreements that take place between companies. Share issuance and private placements of securities are also governed by company law.
The listing of securities on an accredited Indian stock exchange is governed by the SEBI law. In India, mergers and acquisitions are governed by the SEBI (Substantial Acquisitions of Shares and Takeovers) Regulations, 2019. The listing of securities on stock exchanges is likewise governed by this statute.
In India, antitrust laws are regulated under the Competition Act 2002. Businesses that engage in M&A transactions are required to adhere to the applicable competition law regulations and the specified authorities.
KRA Advantage–Mergers and Acquisitions Advisory and Investment Banking Advisory
A reputable management consultant in offering Mergers and Acquisitions services is KRA.
Our professionals have performed M&A and investment banking services with the main goal of enhancing your firm.
We have multifaceted teams of professionals, including lawyers, company secretaries, Chartered Accountants, and IT specialists.
We have a great deal of experience managing mergers, taxes, and accounting issues in India.
Frequently Asked Questions
What is investment banking? How is investment banking different from retail banking?
Investment banking is seen as a subset of banking that offers guidance to businesses on merger and acquisition deals, strategic counsel, and help with IPO planning. Investment banks have a specialised team to handle the aforementioned tasks. A bank that provides the general people with banking services is known as a retail bank. These offerings will include mortgages, loans, deposits, and clearinghouse services for check collection. A retail bank and an investment bank are fundamentally different from one another in that the latter offers services to institutional and big business clients.
What are the main functions carried out by an investment bank in M & A advisory?
The following are some of the primary duties performed by an investment bank in M&A advisory:
- Guidance about a merger and acquisition deal.
- Authorizing loans for the deal.
- Creating the necessary transactional documentation.
- Coordinating the transaction’s completion with third-party agents like attorneys, accountants, and lenders.
- Performing services related to due diligence.
- Guidance given before and after a merger.
In a private acquisition transaction, both the buyer and seller are given advice by investment banks.
What are the modes in which investment banks help raise capital for companies?
Investment banks assist businesses in raising funds through avenues including equity and loans. Initial Public Offerings are another another way that investment banks can assist businesses in raising initial capital. Investment banks help businesses raise secondary financing as well. These banks also offer bonds on their customers’ behalf.
Give an Example of Robotics used in an organization?
An organisation uses chatbots to respond to any pertinent online questions. These inquiries are connected to a series of operations that connect to other websites via Application Programming Interfaces (APIs).
Give an example of world-leading investment banks in the world?
The top investment banks globally are:
The banks mentioned above are primarily categorised as having solely an investment banking division that performs investment bank functions.
For the purpose of catering to the general public and corporate clients, the aforementioned banks offer retail banking and investment banking divisions.
What is the difference between primary offering, secondary, and offering private placement?
When the public is offered company securities, this is known as a primary offering. The initial public offering is another name for the main offering. An initial public offering requires the approval of the relevant authority. In the event that an IPO has already been completed, a secondary offering is made. A business chooses a secondary offering as a source of additional funding. A company makes its securities available to a small group of investors in a private placement. Institutional investors are those who make up this group.
What is meant by the term book building?
The price at which securities are made available to the public in an IPO is referred to as book building. The business markets the shares to chosen investors as part of a book-building process. Investors would offer prices that the corporation would accept. The stock exchange is informed once the share price has been decided upon. The creation of the book is done in strictest confidence.