After receiving the necessary documents and project presentation, our team will try to review your request as soon as possible, and leading experts will offer the best options for project funding.
These services involve advising clients on financial transactions, raising capital, providing market research and analysis, and executing complex financial deals.
Investment banks act as intermediaries between companies seeking capital and investors looking to deploy their funds in various financial instruments. The services offered by these banks vary based on the specific needs of their clients and the prevailing market conditions.
Investment banking services help companies raise capital through various means, including equity offerings (IPOs and follow-on offerings) and debt issuances (bonds and loans). In 2021, global IPO proceeds reached $538 billion, and global corporate bond issuances amounted to over $5.5 trillion.
Professional teams also conduct in-depth financial analysis and valuation of companies.
In mid-2023, there were already six companies across the world with a capitalization of over $1 trillion, which highlights the importance of accurate company valuations.
In 2020, on the wave of a pandemic, the number of global corporate bankruptcy filings reached 4,000. In recent years, the world economy has been going through serious tests, which once again underlines the significance of financial restructuring services in times of uncertainty and distress.
All this and much more is included in the modern concept of investment banking.
List of investment banking services
Investment banking is a wide banking segment that specializes in providing professional financial services to corporate clients in order to optimize their financial operations, raise capital, manage risks and make strategic investments.Investment banking services are complex and specialized, requiring high competence and experience on the part of service providers. The clients of investment banks are large corporations, financial institutions, investment funds, government organizations and other institutional investors.
Investment banking includes a wide range of services:
1. Corporate finance. Investment banks help companies raise capital through a variety of instruments such as IPOs, bond issues, mutual funds, and other debt and equity options.
2. Mergers and acquisitions. Investment banks provide M&A advice by assessing the value of companies, finding partners, participating in negotiations and arranging transactions.
3. Corporate restructuring. When large companies face financial difficulties, banks provide restructuring services to reduce debt, optimize capital and restore business resilience.
4. Support of issues of securities. Investment banks often act as an agent in the issuance and placement of shares and bonds, working with issuers to determine the optimal conditions for issuing and attracting investors.
5. Support on the stock market. Investment banks provide clients with information and analytics about companies and the market, help make informed investment decisions and make transactions in the stock and other markets.
6. Asset management. Some banks provide asset management services, offering corporate clients investment portfolios and strategies aimed at achieving specific financial goals.
7. Management of risks. Investment banks help clients manage the risks associated with financial transactions using a variety of tools and strategies, such as derivatives.
8. Market research and analytics. Professional teams provide their clients with market research, analytics, forecasts and expert opinions to help make informed investment decisions.
9. Corporate advisory. Investment banks act as advisors, providing expert advice on financial strategies, capital optimization and business growth.
Each service is tailored to the needs and goals of a particular client, and investment banks work closely with clients to ensure the best possible outcome for their financial interests.
Corporate finance services
Corporate finance is one of the main investment banking services.Corporate finance includes the processes by which a company raises capital through various instruments and markets to finance its operations, expansion, investments or strategic goals.
The main tools and processes associated with corporate finance are listed below:
Issue of shares in the stock market
An IPO (Initial Public Offering) is a public offering of a company's shares on the open market. This means that the company goes public and provides shares to investors for purchase. The IPO process is complex and requires careful preparation.Investment banks help companies prepare for an IPO in the following ways:
• Valuation of the company and its prospects for determining the share price.
• Conducting legal and financial audits (due diligence) to ensure transparency and compliance of the company with regulatory requirements.
• Preparation of a prospectus, which is a document that contains all the necessary information about the issuer, its business, financial performance and risks.
• Organization of presentations for investors and determination of the optimal share price.
• Coordination of the placement process and the initial sale of shares on the stock market.
Bond issue
Large companies can raise capital through the issuance of bonds, which are debt instruments. Bonds can be of various types, such as fixed income or variable interest.Investment banks perform the following tasks:
• Market assessment.
• Determination of the appropriate type of bonds and issuance terms.
• Preparation of bond prospectus and legal documents.
• Determination of interest rates and terms of bonds in order to attract investors.
• Marketing and placement of bonds on the market.
Mutual funds and private placements
Investment banks can help large companies raise capital through mutual funds or private placements. In countries with a well-developed financial system, these are very powerful financial instruments that involve a wide range of investors and significant resources.Mutual funds are collective investment vehicles in which investors invest money, and then investment banks manage these funds for the benefit of investors. Private placements are the sale of securities to a limited number of investors prior to their public offering.
Loans and loan transactions
Investment banks can lend to companies and engage in leveraged transactions such as syndicated loans or redeemable bonds.In this context, a particularly important role is played by long-term investment loans provided for the development of large projects, such as the construction of new factories and power plants, the modernization of infrastructure, and the like.
Convertible securities
Investment banks can help companies issue convertible bonds or preferred shares, which can be converted into ordinary shares at a certain price or terms.Investment banking support at a corporate level is a complex and multifaceted process, involving numerous financial professionals, analysts, lawyers and other professionals working closely with clients to successfully implement the company's financial strategies and goals.
Mergers and Acquisitions (M&A)
Mergers and acquisitions are the combination of two or more companies for the purpose of creating a new company or being acquired by one company by another.This is a strategically important tool for large companies to strengthen their market position, expand their business, diversify assets, increase efficiency and gain access to new resources. In 2020, global M&A deal value reached about $3.6 trillion, demonstrating the importance of analysis in these transactions.
The M&A process carried out as part of investment banking services consists of several stages:
Preparation and strategic analysis
Investment banks assist clients in defining strategic goals and reasons for a company to seek an M&A deal. Market and competitor analysis is carried out to identify potential partners and identify potential deal scenarios.Search and attraction of potential partners
Investment banks help the client identify and evaluate potential M&A targets. An initial assessment of the possible price and the real value of the target company is carried out. Potential partners are being attracted and preliminary negotiations are being held.Due Diligence
When the client has chosen a target company, a detailed study of its financial condition, business processes, legal aspects and risks is carried out. Investment banks are actively involved in due diligence in order to provide the client with a complete picture of the state and potential of the target company.Company valuation and pricing
Investment banks help the client evaluate the value of the target company based on due diligence data and market conditions. The optimal price for the offer of the transaction is set.
Negotiations and structuring of M&A deals
Investment banking services involve negotiations between the parties to a transaction, representing the interests of their client. The structure of the transaction is determined, including the method of payment (shares, bonds), the terms of the merger and the level of control over the new company.Preparing documentation and closing the deal
Investment banks help prepare all the necessary documents for the transaction, including merger or acquisition agreements, agreements for the sale of shares or assets, and other legal documents. The transaction is completed after approval by its regulators and shareholders of the companies.Company integration and post-deal period
After the completion of the transaction, the integration of the two companies takes place, the unification of business processes, cultures and management. Investment banks may provide accompanying services to the client in the post-deal process to ensure a successful business combination.M&A is a complex process that requires attention to the details and effective risk management. Investment banking services play a vital role in supporting M&A transactions, helping corporate clients successfully achieve strategic goals.
Corporate restructuring services
Corporate restructuring is a process of changing the structure and organization of a company in order to improve its financial position, optimize business processes and improve performance.Restructuring can be carried out in various areas of the company such as finance, operations, management, debt and assets.
Below are the main types of corporate restructuring and the processes associated with them:
Debt restructuring
When a company experiences financial difficulties and has problems paying off its debt obligations, it may proceed to debt restructuring. This may include negotiating with creditors to change the terms of the debt, reschedule repayments, restructure interest rates, or write off some of the debt to ensure the sustainability of the company's financial position.Asset restructuring
An asset restructuring is the optimization of a company's asset portfolio in order to focus on the most profitable or strategically important business units. This investment banking service may also include the sale of non-profit or independent assets, the combination of business units, mergers with other companies or other portfolio optimization activities.Restructuring of business processes
Business process restructuring involves reviewing and optimizing a company's internal operations to improve its efficiency and eliminate excess costs. This may include process automation, supply chain optimization, organizational improvements, and other measures to increase productivity and reduce costs.Management restructuring
Management restructuring means revising the company's organizational structure, possibly replacing key executives, or improving management and control systems. The goal is to improve corporate governance, make strategic decisions and ensure a more efficient operation of the company.Capital restructuring
Capital restructuring is a change in the structure and sources of financing of the company. This may include issuing new shares or bonds, attracting investment from new investors, share buybacks, or other actions to optimize the capital structure.The process of corporate restructuring is complex and requires careful analysis, planning and implementation.
Investment banks play an important role in restructuring by providing expert advice to companies, assisting with the evaluation and planning of the process, and participating in negotiations and implementation of measures.
The purpose of the restructuring is to increase the sustainability and competitiveness of the company in the long term.
Support of issues of securities
Support of securities issuance is a key role played by investment banks when issuing and placing shares and bonds on financial markets.They provide comprehensive services to issuers (whether companies or governments) to help them successfully raise capital in the market.
This process consists of several key steps, which are briefly described below.
Consulting and strategic planning
Investment banks work with issuers to conduct preliminary consultations and determine the strategy. They analyze the financial situation and needs of the issuer, help determine the volume and type of securities to be issued, and provide advice on the best time and conditions for their issuing.Cost estimation and paperwork
Investment banks perform financial analysis of the issuer and evaluate the value of issued securities. They also help to prepare all the necessary documents for registration of the issue with regulators and financial authorities.Determining the price and volume of the issue
One of the key tasks of investment banks is to determine the optimal price and issue volume. They analyze the market, the demand for shares or bonds, assess the risks and determine the issue price that will be attractive to investors and beneficial to the issuer.Marketing and promotion
Investment banks are engaged in marketing and promotion of the issue among potential investors. They use their networks and contacts to attract large institutional investors and funds, as well as work with retail investors. Marketing efforts are aimed at increasing interest in issuance and mobilizing investments.Conducting placement and distribution
Investment banks are placement agents that sell issues on financial markets. They ensure the efficient distribution of securities among investors, coordinate the placement and manage the process of acquiring securities.Operational management and listing
After a successful placement of securities, investment banks carry out operational management of issued securities and ensure their listing on the stock exchange, if required. They also provide shareholder or bondholder registry services and customer service.Support of issues, like other investment banking services, requires high competence, experience in the financial markets and good knowledge of the regulatory environment. Investment banks play an important role in this process, ensuring successful placement of the issue, attractive conditions for issuers and investors, as well as efficient management of all aspects of the transaction.
Support on the stock market
Professional support on the stock market is one of the most important investment banking services.Banks provide clients with detailed information and analytics about companies and the market, helping them make informed decisions and execute transactions on stock and other markets. This service includes offering research, consultations, and executing trades on behalf of clients.
Research and analytics
Investment banks offer a wide range of research and analytics to their clients about companies, industries, and markets. This may include financial reports of companies, analytical reviews, industry trends forecasts, and other information that assists clients in making well-founded investment decisions.Consultations and strategies
Investment banks conduct consultations with clients to understand their investment goals, risk profiles, and time horizons. They assist in developing tailored investment strategies that align with the client's needs and market conditions.Portfolio management
Based on individual strategies, investment banks may provide portfolio management services to clients. This includes selecting specific investment products, asset allocation, and portfolio rebalancing to achieve the client's goals.Market execution
Investment banks act on behalf of clients and execute trades on the stock market and other markets. This involves buying and selling stocks, bonds, derivatives, and other financial instruments according to the specified strategies.Monitoring and reporting
Banks actively monitor financial market and regularly review the performance of the client's portfolio. They provide clients with performance reports and recommendations for strategy adjustments when necessary.Access to new issuances
Professional financial teams may also offer clients access to new issuances of securities, providing flexible opportunities to invest in new companies or projects.Support on the stock market requires high expertise and a deep understanding of financial markets. Investment banks play the role of consultants and facilitators for clients, granting them access to information, analytics, and investment opportunities, ensuring successful investment decisions and portfolio management.
Asset management services
Some investment banks offer comprehensive asset management services, providing clients with customized investment portfolios and strategies designed to achieve specific goals.Asset management offers clients tailored and professional investment strategies, along with efficient portfolio management, to help maintain a balance between risk and return.
Consultations and goal setting
Initially, investment banks hold consultations with clients to understand their financial objectives, risk tolerance, time horizons, and other important factors influencing investment decisions. This helps determine the most suitable asset management approach to achieve specific goals.Development of investment strategy
Based on the information obtained from the client, investment banks create personalized investment strategies that reflect their unique needs and risk profile. The strategy may include a diverse range of assets, such as stocks, bonds, cash, derivatives, and others.Portfolio management
Specialists actively manage the client's portfolio in line with the developed investment strategy. This involves monitoring market, analyzing trends and events that may impact investments, and rebalancing the portfolio as needed to stay aligned with the client's goals.Risk management
Risk management as a part of investment banking services involves effective risk control and prevention of events that may adversely affect the investment. Banks employ various methods, such as asset diversification, hedging, stop-loss orders, and other measures to mitigate potential losses.Monitoring and reporting
Investment banks regularly monitor the performance of the portfolio and provide clients with detailed reports on its status and effectiveness. This enables clients to assess the strategy's performance and make informed investment decisions based on up-to-date information.Access to expertise
One of the advantages of asset management through reputable investment banks is gaining access to the expertise of professionals. Clients can rely on the knowledge and experience of leading financial teams to make informed and well-founded decisions.Risk management
Risk management is a vital investment banking service that has gained increasing importance over the years due to the growing complexity of financial markets and economic uncertainties.Investment banks play a critical role in helping clients identify and mitigate potential risks to safeguard their assets and achieve their financial objectives.
Table. Some key aspects of risk management in the current financial landscape
| Aspects | Brief description |
| Growing market complexity | In recent years, the global financial markets have become increasingly intricate, with new asset classes, complex derivatives, and interlinked economies. Investment banks have adapted to this complexity by enhancing risk assessment models and adopting sophisticated risk measurement techniques. |
| Increased regulatory focus | Regulatory bodies worldwide have placed greater emphasis on risk management in the wake of the 2008 crisis. Investment banks are now required to adhere to risk compliance standards, ensuring that clients' portfolios are aligned with the relevant regulations. |
| Technology and big data | The emergence of advanced technologies and big data analytics has revolutionized risk management in the financial industry. Investment banks leverage these tools to analyze vast amounts of data, identify trends, and assess potential risks accurately. |
| Tailored risk solutions | Investment banks recognize the diverse risk preferences of their clients and provide customized risk management solutions to suit individual needs. They design portfolios with carefully selected assets to balance risk and return based on each client's risk tolerance and financial goals. |
| Professional stress testing and scenario analysis | In response to market volatility and uncertainty, banks conduct rigorous stress tests and scenario analyses on clients' portfolios. These simulations help evaluate the portfolio's resilience under adverse market conditions and guide adjustments to risk exposure. |
| Cybersecurity risks | With the increasing reliance on digital infrastructure, investment banks also address cybersecurity risks. They implement robust security measures to protect clients' financial information and investment strategies from potential cyber threats. |
| Risk management education | Investment banks provide educational resources to their clients, empowering them to better understand various risks and make informed investment decisions. This focus on financial literacy enables clients to actively participate in risk discussions. |
| Real-time risk monitoring | The fast-paced nature of financial markets demands real-time risk monitoring. Investment banks utilize advanced risk management platforms to monitor and update clients on risk exposures promptly. |
| ESG risks integration | Environmental, Social, and Governance (ESG) factors have become integral to risk management strategies. Investment banks assess the impact of ESG risks on investment portfolios and help clients align their investments with sustainable practices. |
As we can see, professional risk management continues to be a cornerstone of investment banking services, with banks proactively adapting to the evolving financial landscape and employing innovative risk management techniques to protect and grow their clients' wealth.
Corporate advisory
Corporate advisory is an investment banking service that is provided to companies to support them in a variety of strategic and financial matters.Banks provide their expertise and experience to help corporations make informed decisions, improve efficiency and increase business value.
Mergers and acquisitions
Investment banks are actively involved in mergers and acquisitions, advising companies on strategy, valuation, deal negotiation and stagecoach.Capital market and share placement
Investment banks help corporations raise capital in the stock market. They act as organizers of the IPO, evaluating the value of the company and coordinating the process of offering shares.Corporate finance solutions
Investment banks provide corporations with various financial instruments, such as bonds and commercial loans, to meet operational needs, expand business, and invest in new projects.Structured finance solutions
Investment banks are developing structured finance solutions, including syndicated loans, derivatives and special-term bonds, to meet the unique needs of corporations.Company restructuring
During periods of financial difficulty or business restructuring, investment banks provide company restructuring services, providing advice on debt management, debt swaps or reorganizations.Risk management consulting
Corporate advisory also includes risk analysis and management to help companies mitigate potential losses and protect their interests in volatile markets.Business valuation
Investment banks conduct company valuations based on financial performance and growth prospects to help clients determine the right value for a business in M&A or other transaction.
Market research and analytics
Market research and analytics are investment banking services that provide clients with comprehensive insights and data-driven analysis to make informed decisions.Banks heavily rely on research teams and advanced analytical tools to deliver timely and accurate market intelligence.
Investment banks employ teams of experienced analysts and researchers who conduct in-depth market research. For instance, Goldman Sachs, one of the leading investment banks, has a global team of over 900 equity research analysts covering approximately 3,600 companies worldwide.
Table. Some key aspects of market research and analytics
| Aspects | Brief description |
| Sector-specific analysis | Market research focuses on specific sectors and industries, providing clients with a deep understanding of market trends and competitive dynamics. For example, JPMorgan Chase's research division covers various sectors, including technology, healthcare, energy, and consumer goods. |
| Data-driven insights | Investment banks utilize vast amounts of data from multiple sources, including financial statements, economic indicators, and industry reports. Bank of America's research division processes over 20 petabytes of data annually to generate insights for its clients. |
| Economic forecasts | Market research includes macroeconomic analysis and forecasts. |
| Equity research reports | Investment banks publish equity research reports that offer detailed analysis and recommendations on individual stocks. Morgan Stanley's equity research division provides coverage on over 3,000 companies, providing clients with actionable investment ideas. |
| Fixed income research | In addition to equity research, banks also offer comprehensive fixed income research. This includes analysis of government and corporate bonds, yield curves, and interest rate forecasts. |
| M&A analysis | Market research plays a crucial role in M&A transactions. Investment banks assess target companies and provide valuations, helping clients make informed decisions during negotiations. |
| IPO analysis | Investment banks also conduct research on companies preparing for initial public offerings. They assess the market's appetite for the offering and provide pricing recommendations. |
| Real-time market updates | Investment banks offer real-time market updates and analysis to keep clients informed about emerging market trends and events that may impact their investments. |
Overall, market research and analytics are integral to investment banking services, empowering corporate and private clients with valuable insights and strategic guidance for successful investment decision-making in an ever-evolving global financial landscape.
