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Showing posts from March, 2023

Merchant Banking: Overview & Functions of Merchant banks

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What is merchant banking? Merchant banking  typically involves providing a range of financial services to businesses, including underwriting securities offerings, managing IPOs, providing merger and acquisition advice, managing private equity placements, and offering various types of structured finance solutions. Merchant banking financial services include underwriting, mergers and acquisitions advice, and corporate restructuring. Merchant banking services: Merchant banking financial services:  Merchant banking financial services  include providing support to corporate clients in their business dealings. These banks often work with firms that may not have the size or resources to raise funds through a public offering ( IPO ). Financing and Loan Services:  Merchant banks have a history of providing international financing and underwriting services for various sectors such as real estate, trade finance, and foreign investment. They also facilitate the transfer of funds...

Explain Private Equity & Private Equity Funds?

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  What are Private Equity Funds? Private equity funds  are investment vehicles that are established to pool capital from institutional and high-net-worth individuals, which use the raised capital to acquire equity stakes in private companies with the aim of achieving substantial returns on investment. These funds can be structured in various ways, including limited partnerships, limited liability companies, or other types of investment vehicles. The funds typically have a finite lifespan, with a specified investment period during which the  private equity firm  actively invests in companies, followed by a period during which the firm manages and ultimately exits its investments.   Private equity funds  generally have a higher risk profile than traditional investments, as they invest in companies that are not publicly traded and therefore typically provide less liquidity/exit options. However, private equity funds also offer the potential for higher returns,...

The Best Practices for Writing a Technical Feasibility Study

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  What Is Technical Feasibility? Technical feasibility  is an assessment of whether a proposed project, product, or service can be successfully implemented using current or available technology. It involves evaluating in detail the technical requirements, constraints, and capabilities of the proposed solution/process to determine whether it is feasible to develop, implement, and maintain it within the given constraints and available resources. Why is a technical feasibility study essential for Any Project? Here are a few reasons why a  feasibility report  is essential for any project: Identifying potential problems:  This report can help identify potential problems and challenges that may arise during the implementation project. This can help project managers in planning for contingencies and mitigate risks before they become major issues. Assessing resource requirements:  A technical  feasibility study  helps assess the resources required for a p...

Business Valuation Services and M&A a Vital Partnership

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  Business valuation  is a process that uncovers the underlying value within a company by examining its financial, operational, market, and compliance aspects.  Business valuation  services create a roadmap for determining the fair market value of a business and provide a snapshot of its current and future worth, making it a critical tool for informed decision-making in M&A, financing, and other related matters. In short,  business valuation  is like a magnifying glass that provides clarity on the current and potential value of a company. Importance of business valuation services in M&A Business valuation  is a crucial aspect of Mergers and Acquisitions (M&A) as it helps to determine the worth of a company and sets the stage for negotiations between proposed buyers and sellers. The process involves evaluating various aspects of a company's financial performance, including its revenues, assets, liabilities, and growth prospects. This informa...

Credit Analysis: Definition, Fundamentals, Uses & How It Works

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  Credit analysis  is the process of evaluating an individual or organization's ability to repay a loan. It involves a thorough examination of the borrower's financial history, including their credit history, income, profitability, equity, debts, and assets. The goal of credit analysis is to determine the level of risk involved in lending money and to make informed lending decisions based on the results of the analysis. This helps lenders determine the likelihood of default and assess the potential return on their investment. Fundamental of Credit Analysis: Credit analysis typically involves the following fundamental features: Financial statement analysis: This involves reviewing the borrower's financial statements, such as profit/loss statements, balance sheets, and cash flow statements/funds-flow statements to determine their financial health, strength and stability. The credit analyst will check the borrower's credit report and credit score to assess their creditwor...