Investment Banker | Public Financial Services, LLC

An investment bank exists to aid governments and corporations when it comes to issuing securities. These may come in the form of stocks, bonds or derivatives. On the other side of the coin, they also help investors to purchase and trade these securities, manage assets and provide general financial advice. Examples of investments banks include Goldman Sachs and JP Morgan.

The main reason why an investment banker is sought out is to provide assistance to private and public corporations that are looking to raise funds in order to start up a business. Very few organizations know how to raise either debt or equity capital and require an investment banker in order to figure out the best strategy.

The investment banker must then actively look for investors for the company in need. Banks such as JP Morgan have an array of contacts amongst entrepreneurs who trust the bank to provide them with a solid investment. At this point, the investment banker must prepare all the required documents in order to ensure that there is no misunderstanding between investor and company. A Private Placement Memorandum (PPM) is usually created by the bank in order to protect both sides legally.

A common mistake made when discussing investment banking is the assumption that the bank provides the money. The banks don?t issue the checks, they just bring together the money men with those in need. The company seeking funding is asked to pay the investment banker a ?retainer? up-front before the bank will help them find an investor. This often causes problems but companies are unwilling to spend money when there is a possibility that they will receive no value.

Another important aspect of an investment banker is to explore the requisite governmental regulations to ensure that no rules have been violated. It?s common practice for companies to raise capital in a manner which are against investment law. In the United States, the most prominent investment authorities are the Securities and Exchange Commission (SEC) and the National Association of Securities Dealers (NASD). Failure to meet the regulations of these bodies could have serious financial and legal repercussions which is why a high quality investment banker is essential when looking for funding.

Public Financial Services, represents private companies interested to go public without an investment banker. This can be achieved by following the same accounting, legal and regulatory rules and regulations of an initial public offering but without an investment banker to assist in raising money. As a result, the cost of going public is typically about $80,000 but can be as low as $40,000. Contact us for more information.

Source: http://www.publicfinancial.com/financing/investment-banker.html

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