Investment Banking and

Merchant Banking
Investment and Merchant Banking both provide financial services to help
businesses grow and reach their goals. This presentation will explore the
similarities and differences between the two fields, and provide live examples to
illustrate their work.

by Yash Sogani
What is Investment Banking?
Definition of Investment Banking
Investment banking involves helping companies and
governments raise money by underwriting and issuing
securities, providing financial advice, and facilitating
mergers and acquisitions.
Overview of Investment Banking
Investment bankers work with clients to develop
financial strategies and execute deals. They help
businesses raise capital through stock and bond
issuances, and assist with major transactions like
mergers and acquisitions.
Investment Banking Services
Mergers and Acquisitions
Helping clients buy or sell companies through due
diligence, valuation, and negotiation.
Financial Advisory
Offering financial advice to clients on a wide
range of issues, such as capital structure, risk
management, and strategic planning.
Underwriting and Issuance
Assisting companies in issuing equity and debt
securities in the public markets. Also helps them
raise capital through private placements.
Research
Providing research on companies and markets,
and using that research to advise clients on
investment decisions.
Investment Banking Transactions
1 IPO of Alibaba Group
Investment bankers helped the Chinese e-commerce giant raise $25 billion in the
largest initial public offering in history.

2 Facebook's Acquisition of Instagram

Investment bankers advised Facebook on its acquisition of Instagram, which helped
the social media giant strengthen its position in mobile.

3 Amazon's Acquisition of Whole Foods

Investment bankers helped Amazon acquire Whole Foods for $13.7 billion, helping
the e-commerce giant venture into the grocery industry.
What is Merchant Banking?
Definition of Merchant Banking
Merchant banking involves providing financial
services to businesses in exchange for an ownership
stake in the company. Merchants banks work to grow
businesses for the long term.
Overview of Merchant Banking
Merchant bankers work closely with a small number
of clients to provide financial and strategic advice.
They typically have a long-term, hands-on approach,
and may even take an ownership stake in the
businesses they work with.
Merchant Banking Services
Equity Financing Debt Financing
Providing equity financing to businesses to help Providing debt financing to businesses to help
them grow and expand. them manage cash flow and operations.

Corporate Finance Project Financing

Offering financial advice and support to Providing financing to businesses to help them
businesses on various issues, such as mergers and launch new projects and initiatives.
acquisitions, restructuring, and strategic planning.
Merchant Banking Examples
Warburg Pincus and
Bausch + Lomb
Merchant banker Warburg Pincus
helped eye care company Bausch
+ Lomb raise capital and expand,
resulting in a successful exit from
the company.
KKR and Radiant Life Care
Merchant banker KKR invested in
Indian healthcare company
Radiant Life Care, helping the
company expand its operations
and improve its healthcare
services.
Goldman Sachs and
Dropbox
Merchant banker Goldman Sachs
provided financing to cloud
storage company Dropbox to help
it grow and expand. Dropbox went
public in 2018 with a valuation of
over $9 billion.
Conclusion
1 Investment Banking vs 2 Real-life Examples
Merchant Banking
By providing real-life examples of
While both fields provide financial investment and merchant banking in
services to businesses, investment action, this presentation has
banking and merchant banking have demonstrated the value of these
different approaches and services. financial services in helping businesses
Investment banking focuses on raising grow and succeed.
capital and executing major
transactions, while merchant banking
takes a long-term, hands-on approach to
growing businesses.