MERCHANT BANKING

GROUP-7 MARGI SHAH NIKITA SHAH MEGHNA JAIN TEJAL KHORAVA MONICA JAIN PRAJITA MEHTA 40 41 54 65 68 72 .

growth capital.  Of the most common private equity investment strategies. Merchant banks invest their own capital in client companies and provide fee-based advice services for mergers and acquisitions.What Is Merchant Banking? Merchant banking primarily involves financial advice and services for large corporations and wealthy individuals. . leveraged buyouts. stock underwriting. and longterm company loans. these include venture capital. and mezzanine capital . Merchant banking practices take care of the needs of commercial international finance. distressed investments. among other services they provide.

are in fact the original "banks". now so called. these methods were now utilized to finance the production of grain. They brought with them ancient practices from the middle and far east silk routes. Originally intended for the finance of long trading journeys. many displaced Jews fleeing Spanish persecution were attracted to the trade.  These were invented in the Middle Ages by Italian grain merchants. As the Lombardy merchants and bankers grew in stature based on the strength of the Lombard plains cereal crops.History Merchant banks. .

stock underwriting. among other services they provide. Merchant banking practices take care of the needs of commercial international finance. and long-term company loans . . etc.FUNCTIONS OF MERCHANT BANKS Merchant banks invest their own capital in client companies and provide fee-based advice services for mergers and acquisitions. leveraged buyouts.

SERVICES PROVIDED BY MERCHANT BANKERS ISSUE MANAGEMENT PORTFOLIO MANAGEMENT LEASING AND HIRE PURCHASE ADVISE UNDERWRTING OF THE ISSUES CORPORATE COUNSELLING CREDIT SYNDICATION TREASURY MANAGEMENT FOREIGN CURRENCY LOANS .

. ‡ Merchant banks have access to traders. merchant banks can get the best possible deals for their clients. financial institutions. and markets that companies or individuals could not possibly reach.Advantages ‡ Merchant banks perform functions that cannot be carried out by businesses on their own. ‡ By using their skills and contacts.

‡ There is always risk attached to the kinds of deal that merchant banks undertake. . ‡ Not all deals carried out by merchant banks meet with unqualified success.Disadvantages ‡ Merchant banks are really only for large corporate customers. or extremely wealthy ‡ smaller businesses owned by individual clients.

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