Within our world, there exists another tiny little world called the corporate world. The corporate world leads a life of its own and is unaffected by any of the external factors. And, what runs this corporate world is called as corporate finance. The definition of corporate finance varies in different countries. But, basically, it is something which is used to describe activities, decisions, and techniques that deal with many other aspects of the company’s finances and its capital, or in simpler terms, it is just something that deals with transactions in, which capital is raised to create develop and grow businesses.
So, the corporate finance experts help the firm or the organization to take certain decisions, such as:
- Investment decisions: they help their clients in the evaluation of investment opportunities, and all of this can be done through various different techniques such as investment analysis, project feasibility and valuation analysis, hence helping to arrive at a constructive investment decision.
- Financing decisions: It helps in coming up with the financial resources which are necessary to support strategic and investment objectives. The best of the best corporate financial consultants help their clients in every aspect of the financing decisions which includes advice on decisions to raise equity or debt and setting the optimal capital structure. Whenever there is a decision to be made on the issue of debt or equity, then these advisors provide their insights on the pricing and other terms of the financing scheme as well as on the optimal timing for issuing capital based on current and forecasted market conditions. They are also further helpful if any of their clients have any doubt about the things mentioned below:
- Decisions to raise equity or debt
- Optimal capital structure advising
- Capital Acquisitions, Initial Public Offering (IPOs) and Seasoned Equity Offerings (SEOs)
- Private Placements of debt and equity
- Advice on issues of structure, pricing, and timing of capital issuance
- Private Placement Memorandum for projects/ companies that communicate the right message to targeted private investors. We deliver what is needed to facilitate and optimize the capital raising process for companies. In the process, the advisory team aims at raising the attractiveness of the project/ company to potential buyers.
- Capital Deployment Decisions: While providing this service, the experts face the toughest time, as it involves the analysis of the firm’s portfolio of businesses and projects as well as the analysis of the impact of changes in the portfolio composition on the company performance. This is done only after a thorough analysis of the client’s strategic direction, activities, financial situation operations, financial situation, business and economic environment, the market conditions and the list goes on and on. To maximize the value, various other alternatives are also identified, and then advice are given upon it.
To conclude, I think it is pretty important for a business or an individual to have their own corporate financial consultant who would differentiate between all the do’s and dont’s and help them in maximizing their capital.