INVESTMENT

BANKING
 GROUP 4
Phan Thị Huyền Thanh _ 050606180358
Trần Lê Thanh Vy _ 050607190663
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Nguyễn Thị Thùy Mỵ _ 050607190275
Lê Văn Sáng _ 050607190438
 Part of a bank or financial institution
that serves governments....

 Providing capital raising and merger

and acquisition services

 Intermediary between investors and

corporations

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 Investment banks provide four primary types of services:

Raising
capital

Mergers
and
acquisitions

Consulting
and
research

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The investment banking
division of a bank only
provides underwriting services
and mergers and acquisitions
advice.

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 RAISING CAPITAL
Banks invest but do not lend money.
Acting as an intermediary between
investment companies and investors.
Helping companies and governments
raise capital.
IPOs and undervaluation
There is a separate brokerage and
securities trading department
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 Investment banks primarily help clients
raise money through debt and equity
offerings.

 Investment banks act as intermediaries

between investors and companies and
earn revenue through consulting fees.

 Clients want to use investment banking

for their funding needs because of the
investment banking's access to
investors, valuation expertise, and
experience bringing companies to
market.

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 What is M&A Investment Banking?
 Bankers advise companies and conduct
transactions in which the company sells
itself to a buyer.

 Acquisition of smaller (target)

companies and divestment or
acquisition of specific parts or assets
from other companies.

 Divestment is when a company sells a

subsidiary - another company it owns..
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 How M&A Makes Money?

Investment banks charge

a fee to act as advisors
for mergers and
acquisitions.

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How do investment banks help companies in M&A transactions?

 Investment banking plays a very

important role in determining the
target of mergers and acquisitions.
 The roles include:
1. analyze the target's financial
information
2. evaluate synergies
3. identify risks and benefits
4. performance evaluation
5. Prepare a financial model to
understand cumulative analysis.
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 What is Consulting and Research?

Basically means doing financial

analysis

Stock valuation and buy/sell

recommendations for investors.

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How Consulting and Research Makes Money?

 The research reports that equity analysts

publish are free.

 Equity analysts contact investors and

whenever investors need to trade.

 Analysts try to figure out what the value of

things is now, and forecasters study the
outlook for the future.
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 Why do large corporations often use investment
banking consulting and research services?
 Large corporations have their own
corporate finance and development
departments.
 Often use an investment bank such as a
consulting firm that can provide
independent advice.
 Has extensive experience in financial
transactions.
 Has an extensive network of relationships
and relationships with investors.
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Who are the clients of Equity Research Department?

 Equity Research's clients are investors.

 Investors can be institutional investors such

as Pension Funds, insurance companies
and other asset management companies.

 Investors can also be retail investors.

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WATCHING