Merchant Banking: Benefits and its services

by Libord Group One-stop Financial Services

Introduction: Whether you are starting a new business or seeking to improve an existing one, hiring a consultant can prove beneficial in the long run. A financial consultant is a highly skilled professional with knowledge of the latest business techniques. They can provide appropriate solutions to address various business challenges.

What is Merchant Banking:

Merchant banking combines banking services and consulting expertise to help manage businesses effectively. Consultants offer guidance in finance, legal matters, and marketing. They assist with funding, improving infrastructure, and aiding business recovery. Financial consultants are skilled professionals who provide solutions to various business problems.

Category I merchant bankers: These are financial professionals who provide various services related to issuing and managing financial products. They can help companies with tasks such as managing initial public offerings (IPOs), providing advice and consultation on financial matters, acting as underwriters (helping companies raise funds), and managing investment portfolios. Basically, they are experts who assist businesses in raising capital and managing their financial affairs.

Merchant banking services operate through several functions, some of which are outlined below:

· Project Counselling: Merchant banks conduct a thorough review of a project, identify key areas, suggest necessary changes, and discuss the project's chances of success. They consider factors like the project idea, market sustainability, financial aspects, and ways to obtain financing.

· Emphasis on improving brand image: Merchant banks help companies build a strong brand image to enhance their performance and reputation among shareholders and investors. They provide guidance on product analysis, market demand, government policies, and recommend discontinuing unprofitable products or projects.

· Assistance in procuring loans: Merchant banks assist merchants or business owners in obtaining loans by preparing loan applications and project reports. They help find suitable financial institutions, track application procedures, and ensure compliance with legal requirements.

· Additional facilities: Some merchant banks offer specialized services such as corporate counseling on mergers, tax issues, hiring employees, and auditing to meet specific needs.

Merchant Banking Services

Underwriting: Merchant banks help companies raise funds by underwriting their securities, such as stocks or bonds. This means they guarantee to purchase any unsold shares, ensuring the company receives the necessary capital.

Issue Management: Merchant banks assist companies in the process of issuing new securities to the public. They help with the preparation of prospectuses, filing legal documents, coordinating with regulatory authorities, and marketing the securities to potential investors.

Corporate Advisory Services: Merchant banks provide advice and guidance to companies on matters such as mergers and acquisitions, strategic partnerships, capital restructuring, and corporate governance. They help companies make informed decisions to enhance their business operations and growth prospects.

Loan Syndication: Merchant banks help companies secure large loans by forming a syndicate of lenders who jointly provide the required funds. This enables companies to access substantial capital for various purposes, such as expansion or project financing.

Project Counselling and Evaluation: Merchant banks assess the feasibility and viability of proposed projects. They evaluate the financial and operational aspects, conduct market research, and provide recommendations to ensure the project's success.

Portfolio Management: Merchant banks manage investment portfolios on behalf of their clients, including corporate and high net worth individuals. They offer expert advice on investment strategies, asset allocation, and monitor the performance of investments to achieve desired financial goals.

Risk Management: Merchant banks help companies identify and manage financial risks associated with their business activities. They provide hedging solutions, derivatives strategies, and risk mitigation techniques to protect companies from adverse market movements.

Merchant banking Service at Libord Group:

We at Libord are specializes in managing various financial transactions and services for companies. We have a team of experts from different fields like finance, law, management, accounting, taxation, and technology. Our focus is on providing excellent performance and utmost satisfaction to their clients.

Other than Merchant banking services we also offer other services such as:

· Managing Initial Public Offers: Helping companies go public and raise funds through the sale of shares to the public.

· Rights Issues: Assisting companies in offering additional shares to existing shareholders to raise capital.

· Follow-on Offers: Helping companies issue more shares after the initial public offering.

· Qualified Institutional Placements: Assisting companies in raising funds by issuing shares to qualified institutional buyers.

· Preferential Placements to Institutional and Strategic Investors: Helping companies sell shares to specific institutional or strategic investors.

· Underwriting IPOs: Assisting companies in guaranteeing the sale of shares during an initial public offering.

· Takeover and Valuation: Providing services related to the acquisition and valuation of companies.

· Delisting of Shares: Assisting companies in removing their shares from the stock exchange.

· Buy Back Offers: Helping companies repurchase their own shares from the market.

· FCCB/GDR/ADR: Managing the issuance and trading of convertible bonds or global depository receipts/ American depository receipts.

· Delisting offers: Assisting companies in voluntarily removing their shares from the stock exchange.

· The Valuation of Equity Shares: Providing expertise in determining the value of company shares.

Overall, we aim to create a strong network of satisfied clients by delivering high-quality services in various financial transactions and ensuring the long-term success of our clients.