Name- Dushyant Jindal Mobile-9910597575
Enrollment No- 10BSP1420 Email- firstname.lastname@example.org
Summer Internship program Project Proposal
Project Proposed:Development & execution of Fund Raising through debt & equity in the domain of investment banking.
Description of the Project in brief:Investment bankers function as intermediaries in financial transactions. They are experienced in carrying out projects that, for most companies, take place very rarely, but are critically important.
The role of the Investment Bank
Investment banks provide four primary types of services: raising capital, advising in mergers and acquisitions, executing securities sales and trading, and performing general advisory services. Most of the major Wall Street firms are active in each of these categories. Smaller investment banks may specialize in two or three of these categories.
An investment bank can assist a firm in raising funds to achieve a variety of objectives, such as to acquire another company, reduce its debt load, expand existing operations, or for specific project financing. Capital can include some combination of debt, common equity, preferred equity, and hybrid securities such as convertible debt or debt with warrants. Although many people associate raising capital with public stock offerings, a great deal of capital is actually raised through private placements with institutions, specialized investment funds, and private individuals. The investment bank will work with the client to structure the transaction to meet specific objectives while being attractive to investors.
Mergers and Acquisitions
Investment banks often represent firms in mergers, acquisitions, and divestitures. Example projects include the acquisition of a specific firm, the sale of a company or a subsidiary of the company, and assistance in identifying, structuring, and executing a merger or joint venture. In each case, the investment bank should provide a thorough analysis of the entity bought or sold, as well as a valuation range and recommended structure.
such as potential investors or companies that could be approached for acquisition. thereby empowering small to medium sized companies with financial and transaction experience without the addition of permanent overhead.
For all functions except sales and trading. allows for efficient use of client personnel. and other advisors. Specific functions include making a market in a stock.
Who needs an Investment Bank?
Any firm contemplating a significant transaction can benefit from the advice of an investment bank. and publishing research reports. and is vitally interested in seeing the transaction close. coordinating legal. or "brokering" a transaction. and providing an opinion as to the fairness of a proposed transaction. and in a financial transaction may be at a disadvantage versus larger competitors. the services should go well beyond simply making introductions.Sales and Trading
These services are primarily relevant only to publicly traded firms. and generally assisting in all phases of the project to ensure successful completion. assistance with due diligence. A quality investment banking firm can provide the services required to initiate and execute a major transaction. or firms which plan to go public in the near future.
Experience It extremely important to make sure that experienced. assisting in financial restructurings. negotiating the terms of the transaction. accounting. an investment bank provides objectivity. Although large corporations often have sophisticated finance and corporate development departments. senior members of the investment banking firm will be active in the project on a day-to-day basis.
. business valuations. most projects will include detailed industry and financial analysis. preparation of relevant documentation such as an offering memorandum or presentation to the Board of Directors. The investment bank should have a wide network of relevant contacts. Depending on the type of transaction. For example. it may be preferable to work with an investment bank that has some background in your specific industry segment.
General Advisory Services:
Advisory services include assignments such as strategic planning. Most small to medium sized companies do not have a large in-house staff. a valuable contact network. placing new offerings.
However. knowing that the transaction is being handled by individuals with experience in executing similar projects.
Having worked on a transaction for your company.Record of Success
Although no reputable investment bank will guarantee success. and with terms that provide maximum value to the client. The investment banker has a vested interest in making sure the transaction closes.
Generally. At the same time. the investment bank will be intimately familiar with your business. that the project is completed in an efficient time frame. for example when bidding on a company that is for sale. the firm must have a demonstrated record of closing transactions. and generally not providers of capital. a good investment bank should become a trusted business advisor that can be called upon informally for advice and support on an ongoing basis. the client is able to focus on running the business. an experienced.
. It is important to utilize a fee structure that aligns the investment bank's incentive with your own. Because investment banks are intermediaries. quality investment bank adds significant cant value to a transaction and can pay for its fee many times over. with the majority of the fee contingent upon successful completion of the transaction. some executives elect to execute transactions without an investment bank in order to avoid the fees. rather than on the day-to-day details of the transaction.
Ability to Work Quickly
Often. The investment bank must be willing and able to put the right people on the project and work diligently to meet critical deadlines. investment banking projects have very specific deadlines. After the transaction. which may be one-time or monthly. an investment bank will charge an initial retainer fee.
www. Financial institutions like banks. Summi Gupta
. etc are approached for required fund raising accordingly. expansions.Ms. No direct interaction with clients and financial institutions/Banks. PE placement.
Methodology:y y Financial information like previous years annual reports are received from the client companies Detailed analysis of financials of the client companies is done to check the best option from debt. merger &
Limitation of the Study:y y Limited access to the information. Kolasinski & S. mergers and acquisitions.P. etc to raise the required funds.solutions4sme. Pandey Investment and portfolio analysis by Prasnna Chandra Investment Banking and analyst objectivity by Adam C. A.Objective of the Project:Giving companies financial advice on what would be the best way to arrange for funds required for projects. Kothari
Faculty Guide Name:.
References:y y y y y Company Manual Company website.M.K Mitra Company Guide Name:.com Financial Management by I. pre-investment due diligence & valuation of the firms. paying debts and so on Financial analysis of the company and industry analysis.