Introduction to Investment Banking
                     INVESTMENT 
BANKING
TITLE LOREM IPSUM
Introductio
n
Investment Banking is a financial service 
provided by a banking division or a finance 
company. It assists high-net-worth individuals, 
companies, or government to raise or create 
capital. 
They underwrite new securities for all types of 
corporations, assist in the sale of securities, 
and arrange for mergers and acquisitions or 
reorganizations.
Source: cleartax.in
Investment 
banker
An investment banker is an expert who 
understands and advises corporations about 
the feasibility of large projects. He helps in 
identifying the risks associated with the 
projects before his client can invest time and 
money.
Source: cleartax.in
Understanding 
Investment Banking
An investment bank acts as an intermediary 
between the company and the investors on the 
stock exchanges. It creates a viable investment 
plan for businesses that involves proper pricing 
of financial instruments. 
When the company holds an initial public offer 
(IPO), an investment bank will buy most of the 
shares directly.
Source: cleartax.in
What Do 
Investment 
• ThereB cana somnetikmes be  cDonfuosion? between 
an investment bank and the investment 
banking division (IBD) of a bank. 
• Full-service investment banks offer a wide 
range of services that include underwriting, 
M&A, sales and trading, equity research, 
asset management, commercial banking, 
and retail banking.
Source: 
corporatefinanceinstitute.com
Services
• Underwriting
• Mergers & Acquisitions (M&A)
• Sales & Trading
• Equity Research
• Asset Management
Source: 
corporatefinanceinstitute.com
Banking Clients
• Governments – Investment banks work with 
governments to raise money, trade securities, and 
buy or sell crown corporations.
• Corporations – Bankers work with both private and 
public companies to help them go public (IPO), 
raise additional capital, grow their businesses, 
make acquisitions, sell business units, and provide 
research for them and general corporate finance 
advice.
• Institutions – Banks work with institutional 
investors who manage other people’s money to 
help them trade securities and provide research. 
Source: 
corporatefinanceinstitute.com
Benefits
• Effective client handling and handholding 
about investing their money in other 
companies to increase their value.
• An assured raising of financial capital by 
underwriting or by acting as an agent in the 
issuance of securities to arrange for 
acquisition, merger or sale.
• Thorough investigation and due diligence to 
ensure that its client’s deal meets every 
compliance to minimize any failure risk or loss 
of invested capital.
Source: cleartax.in
INVESTMENT 
BANKING SKILLS
Financial 
modeling
• Performing a wide range of financial 
modeling activities such as building 3-
statement models, discounted cash flow 
(DCF) models, LBO models, and other types 
of financial models.
Source: 
corporatefinanceinstitute.com
Business 
valuation
• Using a wide range of valuation methods 
such as comparable company analysis, 
precedent transactions, and DCF analysis.
Source: 
corporatefinanceinstitute.com
Relationship 
management
• Working with existing clients to successfully 
close a deal and make sure clients are 
happy with the service being provided.
Source: 
corporatefinanceinstitute.com