Investment And Sale Side

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Banks operating
By Emmanuel Nkrumah
Banks operatingI hope this post can get it started! I want to clarify the opacity of investment banks and the sell side by breaking down its components. This will be Part 1 of a two part series on the Sell Side vs. The Buy Side. It?s important to have a basic understanding of how the financial services industry is set up, and how its components interact with each other.
I I hope you can at least competently explain your discontent for the financial services industry after reading this.? THE SELL SIDE? The Sell Side is where you find your investment banks (IB)such as Databank Asset Management Service Ltd(http://www.ghanayello.com/company/35853/Databank_Asset_Management_Service_Ltd),Elite kingdom Investment Ltd(http://www.ghanayello.com/company/7235/Elite_Kingdom_Investments_Consulting_Co_Ltd),Zentih Bank Ghana Ltd,Buoyant Investment etc. Let it be known that these gigantic banks now have trading, equity research, and asset management units under their umbrella so they are essentially diverse investment houses. In any case, they are in the business of raising capital, providing financial advisory to companies, selling research to the other side of the country, and facilitating trading between Buy Side parties. These massive investment banks are separate from the everyday banks you deposit money into. Those are called commercial banks and have been strictly separated from INVESTMENT BANKS.
However, you can work with investment bankers to help take your company public (IPO), issue debt, or even advise you on a mergers and acquisition (M&A). Let?s define the corporate finance services, also known as underwriting, which is the core of traditional investment banking.????? M&A: This is where pitch books come into play because you need to get hired by a company to help them merge or sell the company, and then need to convince another company to merge with or acquire the company you are representing. This is called a sell-side M&A deal. A Buy Side deal requires you to locate a company and finance its acquisition for your client. If it?s a broad deal and your client is not sure of the acquisition target, then you run an auction to get the best price from potential acquisitions.
If it?s a targeted deal and the client is pretty sure which company they want to approach, then you work more on negotiation. Clearly, this requires tons of due diligence.???? Debt Capital Markets: This group advises a client on raising debt for an acquisition, as well as refinancing and/or restructuring of existing debt. The bank leverages its relationship with lenders to organize new purchases of debt for the client. Debt is used more often than equity to finance transactions because it is cheaper and more readily available (liquid). It also helps diversify and improve the capital structure of the company.???? Equity Capital Markets: This group works with a client to organize and structure their equity offerings (IPO or a secondary offering) to investors, and to update and improve valuation to entice new investment. TO BE CONTINUED??????????????

PROFILE OF EMMANUEL NKRUMAH

A student of university of ghana pursuing Economics and Mathematics and the President of Databak Universal Economic School(DUES-LEGON)…an investment club that trains students to be investors
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