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  What is investment banking? Investment banking is a separate division of the financial sector that arranges debt and deals in securities for all types of corporate organizations. Additionally, it is also responsible for providing other services such as financial advisory services and mergers and acquisitions etc. In simple words, we can sum up that investment banking firm work as a mediator between the corporates looking forward to expanding their business and potential investors. In modern times the financial needs of business owners have increased tremendously. On top of that, handling such large finances requires the assistance of experts such as investment bankers. Thus investment banks come to the rescue of such people with huge capital needs and help them run their businesses smoothly. Overview of investment banking firm. While a commercial bank is essential in handling the day to day financial needs of the people/ entrepreneurs and provides the credit requirements, an inv...

  Investment banking firms  serve as an interface between businesses and investors. The phrase refers to the functions of a financial services firm or a corporate division that includes providing advice on financial transactions to individuals, corporations, and governments. Let's take a closer look at what these firms do.  Functions of an Investment banking firm These functions can be broadly classified into three categories  1. Trading Trading desks at these firms are often segregated by market. Foreign exchange, or forex, fixed income, equities, and commodities constitute the key segments. Each of these areas can be further subdivided. For instance, fixed income is a broad category that includes everything from treasury bonds to risky, low-grade company bonds, also known as junk bonds. 2. Mergers and Acquisitions (M&A) Amongst the key functions of an  investment bank  are mergers and acquisitions. Typically, a larger corporat...

  Business valuation services  involve figuring out a company's fair economic value, which in turn depends on a number of other variables. Evaluating economic value is not a precise science, and the outcome frequently differs depending on the evaluation methodology and approach used. There are multiple methods for evaluating a company, including discounted cash flow ,  liquidation value, market cap, income multipliers, venture capital method, and book value, among others. It may include futuristic projections based on prior and current performance. Potential investors/buyers can use these  valuation services  to evaluate specific start-ups, SMEs, and corporations. Need for business valuation Business valuation  has evolved to incorporate a wide spectrum of services. The services may be required for the following. While negotiating for funds potential investors, an objective appraisal is frequently required. Professional proof of your company's value he...

  A  pitch deck  is a brief presentation providing potential investors with an overview of your firm. A  pitch deck  is often called a start-up or an  investor pitch deck .  An effective pitch deck needs to be geared to the audience and the forum in which it is being presented. Products, business models, introduction to the team, your monetization plan, financial estimates, and so on are all important components of a  pitch deck presentation . Establishing a business's credibility is one of the most vital functions of a pitch deck.  Building credibility is also essential to continuing the conversation because, in the majority of cases, this is your first interaction with investors. The  investor pitch deck  becomes a powerful instrument for businesses to acquire funding if it is immaculate and presents a captivating and intriguing story about your business ideas.   Key elements of a pitch deck:   A...

  A  feasibility report  assesses the viability of proposed project plans or methods from a technical, commercial, and financial angle. The study helps narrow down the risk factors in the implementation of a project.   The  feasibility report of a manufacturing plant  entails the examination and assessment of a proposed project -- whether it’s viable to manufacture the product to meet customer needs. The report assesses but is not limited to the following (as applicable): staying within budget and finding appropriate resources, location, technology, facilities, tools, capacity, software, and staff with the skills required, including support functions, available or anticipated to be available as required to implement the project.   Purpose of a feasibility report A  feasibility report  looks at a variety of factors to determine whether a new venture will be profitable and worthwhile now or in the future. A preliminary analy...

  Section 5(26) of the IBC, 2016 - " Resolution plan " means a plan provided by the resolution applicant for the corporate debtor's bankruptcy resolution as a going concern in line with Chapter II of Part II of the Insolvency and Bankruptcy Code. A resolution applicant, in simple terms, is "anyone who submits a resolution proposal to the resolution professional." A Resolution Plan is a rehabilitation plan for a corporate debtor (CD) that is going into insolvency. It is a report based on the information memorandum provided by the Resolution Professional that focuses on legal, financial, management, and technical methods to help the CD get back on its feet. It must be approved by the committee of creditors ("COC") and meet the IBC's required conditions. Preparation and Submission of the Resolution Plan A Resolution Applicant must submit information in accordance with the RFRP (Request for Resolution Plan) which is shared by RP after Coc’s approval ...

  Long-term funding/financing for industrial and infrastructure projects based on a non-recourse financial structure is referred to as Long Term Project Finance . The structure often includes a syndicate of lending institutions and multiple equity investors as sponsors. Due to the capital-intensive, high-risk, and time-consuming (long gestation period) nature of such projects, independent projects of a corporation necessitate the finesse of Project Finance approaches. In such circumstances, capital is injected through the Project Finance model based on the projected cash flow from the project, with most of the project assets and cash flows maintained securely. Since it allows firms to fund huge projects off-balance-sheet, project finance appeals to the private sector (OBS). Sponsors in project finance Each project sponsor has a distinct aim for investing in the project finance venture, which may differ depending on the sponsor type.  In such deals, four categories of sponsors...

  Entrepreneurs must understand why they are seeking funding. Before approaching investors, owners need to have a clear financial and business plan. A startup may need funds for a few, or all the reasons stated below. Working capital Legal and consulting services Product development Prototype creation Team hiring Raw material and equipment Licence and certifications Marketing and sales Office space and admin expenses The three types of startup finance are equity financing, debt financing, and grants. Each has its own set of merits and demerits. The startup funding landscape has expanded beyond venture capital and angel investments. Today, there are numerous channels for startups to raise capital. We've discussed eight of them below. Source Url :   https://www.resurgentindia.com/know-8-methods-to-get-funds-for-your-startup

  Employee Stock Ownership Plans (ESOPs)  allow businesses to sell part of their company’s shares to employees.  ESOPs  are provided, in the main, to increase the retention rate in a firm. The idea here is to recognize and reward staff for their commitment and contribution to the company while ingraining a sense of ownership.  Employee stock options  can provide new possibilities for succession and estate planning, offering closely held businesses a vehicle for continued expansion.   For a startup,  ESOP valuation  is crucial as the valuation of the organization in its entirety. Companies that offer ESOPs are required to provide  ESOPs  as an expense in their P&L statement. The provision impacts the determination of distributable profits for factors such as EPS calculation, dividend declaration, MAT payment, and profit determination for senior management remuneration. Valuing ESOPs  eventually translates into valuing t...