Investment banking is a part of the banking system, catering to the needs of capital markets and market participant. Investment banking firms act as a bridge between the investors and capital seekers, including debt and equity.
These firms provide a range of services to clients, including restructuring, capital raising, underwriting, consultancy, security broking, mergers & acquisitions, primary market services, sales and trading etc.
Investment banking plays an important in the domestic capital markets as well as international capital markets. Investment banking firms assist market participants in complex financial transactions and provide advisory services.
What are the key functions of investment banks?
Mergers & Acquisition: Investment bankers assist companies in finding value accretive growth opportunities through M&A. They propose clients with potential targets along with the rationale behind the transactions.
Companies looking to grow inorganically often seek investment banks for suitable targets, and investment bankers provide the management with prospective opportunities. M&A is not limited to domestic markets and extend to international markets.
Equity Capital Markets: Investment banks provide companies with the necessary advisory and facilitation of new equity issues by companies. They engage with the company and prospective investors to support fresh equity issues.
Under this function, investment banks also help privately held companies making public markets debut through an Initial Public Offering. They have an extensive role in an IPO from drafting prospectus to determining an offer price.
Debt Capital Markets: Investment bankers also provide debt capital market services to organisations, including Government and companies. Debt continues to remain a favourable source of capital for businesses largely due to the relatively cheaper cost of capital and no dilution of ownership in the entity.
Investment banks bridge the investors and capital seekers and price the debt issues of companies and Governments. Debt capital markets are a crucial source of funding of an economy and play an important role in growth.
Leveraged Finance: It means the use of debt capital to finance the purchase of investment assets, including acquisitions, takeover and mergers. Since the cost of equity is higher than the cost of debt, corporate raiders have preferred leverage finance to buyout firms.
Investment banks help companies to raise capital for leveraged buyouts. The key difference between debt capital markets and leveraged finance is that leveraged finance provides access to high-yield debt capital.
Firms can use high-yield capital for leveraged buyouts, mergers & acquisitions, capital expenditure, recapitalisation, refinancing.
Restructuring: Investment banks also provide restructuring services to corporates and organisations. Under a restructuring, they attempt to remediate the bottlenecks in a business that are plaguing the performance.
Investment banks provide full advisory to improve business performance after an in-depth study of the company. After the study, they may suggest companies to demerge a part of business, sell a part of business, restructure organisational structure etc.
Trading & broking: Investments banks also provides trading and broking services for securities, including equity, fixed-income, currencies, commodities, derivatives etc. In addition, they also provide research services for the asset classes covered under their offerings.
IIM SKILLS designs course programs that are industry-relevant and job-oriented. Careful research results in developing the curriculum for each skill development program to enable students to upskill and receive the best training possible. The job-oriented programs by IIM SKILLS take up to 12 weeks for professionals, students, new job seekers.
IIM SKILLS Investment banking course Content & Modules:
Technicals of Investment Banking
- Overview of Investment Banking
- Role of Investment Bankers
- Types of Investment Banks – Bulge Bracket, Mid-Market and Boutique
- Merchant Bank vs Investment Bank vs Commercial Bank
- Meaning of Buy-Side and Sell-Side of Business
- Investment Bank vs Private Equity vs Venture Capital
- Concepts of Mergers and Acquisition (“M&A”), Joint Venture (“JV”), Spin-off and Capital Raise
- Vertical and Horizontal Mergers
- A Sell-Side Deal Lifecycle
- Concept of Due Diligence
- Different Funding Stages / Types – Seed Round, multiple Series, Initial Public Offering (“IPO”), Rights Issue, Private Placement, etc.
- Concept of Underwriting and Book Building Approach
- Overview of Greenshoe Option
- Understanding of Corporate Restructuring and Turnaround
- Discussion on Tender Offer, Earnout, Leveraged Buyout (“LBO”), etc.
The institute has prepared over 25,000 students in various professional courses and delivers placement support and resume service with its course programs. The course programs here qualify one for work-from-home and full-time employment. It also helps you to establish yourself as a freelancer. The course details of the Financial modeling program by IIM SKILLS are as follows:
- Course Name: Online Investment Banking course
- Course Duration- 3 Months + 1 Months Guaranteed Internship
Characteristics That Make the Program the Best Investment banking course:
- Interactive live online course
- Flexible scheduling
- Practical assignments
- Hands-on learning
- Dedicated placement cell
- 100% interview guarantee
- Tool-based practical learning
- Mentorship by top-level professionals
- Community access to the alumni
- Lifetime access to the LMS
- LMS consists of recordings and classes
- 100% money-back guarantee for unsatisfied customers
- Accredited Master’s certificate from IIM Skills
- 24×7 learning and technical support etc.
Tools You Will Master as a part of the Certification Program:
- Excel
- PowerPoint
Who Can Enrol in This Course:
- Graduates
- CA/ CFA/ FRM/ MBA
- Finance professionals
- B.Tech graduates/ Engineers etc.