Investment bankers have a variety of functions they help clients with in the financial and investment business. Here are three functions you need the help of an investment banker when growing your startup or going public.
NEW STOCK ISSUANCE
An investment banker’s primary role is to function as the intermediary between companies going public and potential investors. During initial public offerings (IPOs), your investment banker helps you get debt financing by finding the right investors. He or she offers counseling before underwriting and also continues with advice post-securities distribution. Your investment banker makes sure your company’s financial statements are accurate and that you have a prospectus for your investors to review prior to purchasing securities.
Regardless if you’re seeking to go public or looking for equity funding, underwriting is part of the package. For example, they facilitate investors purchasing an agreed-upon number of shares of the new stock which is sold through the stock exchange.
Investment bankers help you price your stock as well, and they can also act as underwriters for corporate bond issues.
FINANCIAL ADVICE
Your investment banker advises clients like you in several ways. They handle your IPOs, and they offer sage advice on taking your company public or raising capital through alternate avenues. Rely on your investment banker to advise you on all aspects of financing that a company needs.
MERGERS AND ACQUISITIONS
Investment bankers also help companies by handling their mergers and acquisitions. Your investment banker is a wealth of information and help when evaluating the worth of a possible acquisition. You can rely on his or her expertise to arrive at a fair price. With plenty of mergers and acquisitions under their belts, investment bankers help you structure the deal and facilitate the acquisition, resulting in as smooth a process as possible.
FINAL THOUGHTS
Listing Partners can help you find the right financial advisor to fit your needs. Rest assured that your investment banker and financial advisor is legally bound to act in your best interests. Since you’re working with someone who will have a central role in your IPO or other financing arrangements, you want someone you can trust and who is easy to work with. Essentially, choosing the right investment banker helps you raise money by issuing stock, floating a bond, negotiating a favorable acquisition, or even arranging the sale of your company, if that’s your wish.
Contact Listing Partners today to discuss your investment banking needs. We have extensive connections in the market and can help you find the right financial advisor for your venture. Wherever you are in the process of an IPO, it makes sense to have the right people on your side.
