Investment Banking Overview, Lecture notes of Lease Finance and Investment Banking

Download Investment Banking Overview and more Lecture notes Lease Finance and Investment Banking in PDF only on Docsity! Owner transition or exit: ▪ Generational transfer ▪ Professional or personal goal ▪ Management buyout ▪ Retirement y y INVESTMENT BANKING OVERVIEW Creating competitive markets for the capital needs of businesses and their stakeholders BUSINESSES AND THEIR STAKEHOLDERS REGULARLY FACE CHALLENGES REGARDING CAPITAL NEEDS FOR VARIOUS PERSONAL AND PROFESSIONAL FINANCIAL GOALS Strategic growth opportunities: ▪ Acquisition financing ▪ Greenfield (de novo) project ▪ Geographic or facility expansion ▪ Working capital requirements Dividend or recapitalization: ▪ Restructuring / obtaining debt ▪ Financing shareholder liquidity ▪ Layering in new capital ▪ Distressed situations Identifying the type of capital, the appropriate structure of that capital, and the ideal capital partner can all be handled by an investment bank Business identifies capital need and engages investment bank Investment bank interfaces with the universe of capital providers… ...to create a competitive market for the best capital solution available THE INVESTMENT BANKING PROCESS ▪ Conduct initial diligence ▪ Create of financial and forecast models ▪ Prepare marketing documents & summaries ▪ Identify prospective purchasers / investors ▪ Organize & manage virtual data room ▪ Contact prospective purchasers / investors ▪ Provide evaluation materials ▪ Share access to data room ▪ Evaluate indications of interest ▪ Select finalists for on-site management meetings ▪ Oversee management presentations ▪ Negotiate initial deal terms ▪ Fulfill initial diligence requests ▪ Analyze and evaluate final letters of intent ▪ Finalize terms with the winning bidder ▪ Complete commercial, legal, & financial diligence ▪ Manage communications with buyer & seller legal counsel ▪ Review of legal documents for business points ▪ Sellers execute final purchase agreements PREPARING MARKETING BUYER DILIGENCE & NEGOTIATIONS FINAL DILIGENCE & CLOSING THE INVESTMENT BANK MANAGES THE PROCESS FROM INITIAL PREPARATIONS THROUGH FINAL DILIGENCE & CLOSING Conglomerates Financial Private Equity Funds Commercial Banks Non-Bank Lenders Strategic Family Offices Competitors Supplier / Customers Other Sources Professionalizing the process enhances the value to the business & its stakeholders Capital partner is identified and funds are provided directly to the business or its stakeholders