Investment Banking Analysis 2022

Running head: INVESTMENT BANKING
INVESTMENT BANKING
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Author’s Note

INVESTMENT BANKING1
Table of Contents
INTRODUCTION:..............................................................................................................2
USEFULNESS OF INVESTMENT BANKING PRODUCTS:.........................................2
Merger and Acquisition Services:...................................................................................2
Corporate Finance:...........................................................................................................3
Services provided by Investment Banker:.......................................................................4
CHALLENGES FACED BY INVESTMENT BANKER:.................................................5
Relationship Management:..............................................................................................5
Structuring Skills:............................................................................................................6
Deal Execution:...............................................................................................................6
Competition:....................................................................................................................6
New Business Opportunities:..........................................................................................7
Skilled Personnel:............................................................................................................7
Technology:.....................................................................................................................7
IMPACT OF REGULATORY CHANGES IN INVESTMENT BANKING SECTOR:. . .8
CONCLUSION:..................................................................................................................8
REFERENCES:.................................................................................................................10

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INTRODUCTION:
Investment Banking can be termed as the management of the investments that are made
by the client of any bank. Thus, investment banking is the services that the banks or other
financial institutions around the world provide to their respective customers. The customers
include high net-worth individuals, corporate companies and even the governments. There are
several services that these investment bankers provide to their customers. They are managing of
the large projects, identifying the risks and implementing remedies that can reduce such risks.
The services may also include the analysis of the financial status of that individual. The
corporations around the world often take help from the investment bankers to investigate about
the risks that are associated with the projects that the corporations are planning to take. The
investment banker industry is being divided into three major heads. They are “Bulge Bracket”
(upper tier), “Middle Market” (middle-level business) and “Boutique Market” (specialized
business). Some of the notable services that the investment bankers deal with are merger and
acquisitions, corporate finance – financial restructuring and leveraged finance, equity research,
sales and trading and the most important asset management. Some of the most notable products
that the investment banker offers are insurance of securities, underwriting, sales and trading of
equity and derivatives, fixed income instruments, currency exchange and also sale of
commodity.
USEFULNESS OF INVESTMENT BANKING PRODUCTS:
Merger and Acquisition Services:
In recent times the business around the world are engaging in the merger and
acquisitions. The reason behind the rise in the merger and acquisitions activities is due to the rise
in the pressure on the business and also due to the globalization. In order to expand the business

INVESTMENT BANKING3
the companies around the world are engaging in merger and acquisition activities (Al-Qeisi et al
2014).
The major role that the investment banker plays during the merger and acquisitions is to
identify the fair value of the companies that are involved in this activity. Investment bankers are
experts in calculating the worth of the companies. Investment banker also identifies the worth of
the companies in different situations (Sartori et al 2014). In order to value the worth of the
companies in different situations the investment banker uses financial models that are influenced
on the basis of the fixed and variable components that can affect the company. The expertise in
the valuation of the companies enables the investment banker to provide arbitrage services to
their clients/customers.
Corporate Finance:
The investment banker plays a very significant role in managing the corporate finance of
other corporations. Investment banker assists their clients to raise the capital, which requires for
present and future operations of the business (Söderholm and Svahn 2015). Thee investment
banker mainly fulfils their duty by analysing the net worth of the company, loan repaying ability
of the company and growth projections of the company.
During the period where the organizations faces substantial challenges, financial
restructuring and leveraged finance often assists the company to recover. The financial
restructuring is one of the primary services that investment banker provides to their clients. In
order to restructure the finance of the company the investment banker creates a balance between
the equity capital and debt capital of the company. The balance between the equity capital and
debt capital saves the company from bankruptcy. Under leverage finance activities, investment