Investment banking or sometimes referred to as corporate finance is broadly fragmented into 2 sectors, products and industries. The purpose of both is to provide advisory on transactions, mergers, and acquisitions and to arrange or sometimes even provide financing for these transactions.
GAA’s Investment Financing branch offers a wide range of services like Merger & Acquisition Advisory both Domestic & Cross Border, Partner, Joint Venture & Strategic Alliances, Government Disinvestment & Privatization, Fund Raising – Equity, Mezzanine, Structure Finance & Debt, and Distress Investment Banking.
Our in-depth industry and product knowledge, combined with extensive transaction experience, enable us to consistently achieve high-quality, successful outcomes for our clients.
Institutional investors who buy securities are referred to as buy-side M&A. Money is raised from investors and invested in asset classes using various trading tactics on the buy-side. Sell-Side M&A is a type of investment banking where the primary goal is to help large corporations generate cash through debt and equity and then sell those assets to hedge funds, mutual funds, pension funds, insurance companies, and other financial institutions.
Partner, Joint Venture & Strategic Alliances
A partnership, also known as a joint venture, is a type of business formed by a group of organizations with the sole goal of carrying out a certain business activity. Strategic alliances, on the other hand, are agreements between entities to collaborate in order to improve the productivity and performance of both parties concerned.
Government Disinvestment & Privatization
Disinvestment refers to the government’s selling of assets, which are often central and state public sector firms or fixed assets. Disinvestment may be used to privatize assets in a few instances. Minority disinvestment, majority disinvestment, and complete privatization are the three primary types of disinvestment. Privatization aims to bring better efficiency and objectivity to the company.
Fund Raising – Equity, Mezzanine, Structure Finance & Debt
The practice of raising new cash by selling shares to the general public, financial institutions, or institutional investors is known as equity fundraising. It assists businesses in meeting their liquidity demands by allowing them to sell their stock in exchange for cash.
Mezzanine financing combines debt and equity financing, giving the seller the option to convert to an equity position in the event of default. When opposed to corporate debt, mezzanine financing helps the company generate higher earnings.
Structured finance is the most commonly employed tool by businesses with complex funding requirements. Syndicated loans, hybrid securities, credit default swaps, and collateralized debt/bond/mortgage obligations are examples of structured finance instruments.
- Domestic & Cross Border M&A
Domestic and cross-border mergers and acquisitions are driven by a number of strategic and financial objectives. Domestic mergers typically include two enterprises from the same country. Cross-border M&A, on the other hand, occurs when two companies from different nations merge.
Distress Investment Banking
Securities of companies in financial default or insolvency are referred to as distressed investment banking. Because there is a chance of the securities being worthless, distressed securities can be purchased at a reduced price. When an investor decides to buy a firm’s distressed debt, the final effect is that the investor gains control of the company. When a company or one of its subsidiaries is in severe need of finances due to failure or bankruptcy, rescue financing is used.