Whether starting a new business or seeking to improve an existing one hiring a valuation firm can prove to be beneficial in the long run. These financial consultants are skilled professionals with expertise in the latest business techniques who can provide appropriate solutions to address various business challenges.
Who are Marchant Bankers?
It is a specialized branch of banking that provides financial services to medium to small-sized businesses. Merchant banker valuation consultants help their customers with underwriting, fundraising, credit, or financial advice.
Role of Merchant Bankers
The business activities of a merchant banker include managing issues through trade agreements, subscribing shares, and offering consultation services. The role of merchant bankers in India can divided into some categories which are listed below:
Raising finance: These finance professionals support their customers in collecting funding through stocks, bank loans, debenture issuances, etc. The funds collected by this strategy can be used in launching a new business or modernizing the current organization.
Promotional activities: At times merchant bank consultants may also assist with political, technological, and joint projects. They allow developers to create innovations, define ventures, produce feasibility studies, and receive permits from public bodies and opportunities as they are known as industrial business promoters.
Brokers in stock exchange: On behalf of the customers they sell and purchase stocks in the stock market. They often carry out surveys of equities and remind consumers of the share to be purchased, the date of purchase, the amount of such acquisition, and the period that these shares will be exchanged.
Project management: They are known for assisting consumers in various areas. They guide the position and writing of the plant study, feasibility reports, finance project preparation, sources of support, policy benefits, and concession.
Advice on modernization and expansion: As a consultant, they advise on mergers, partnerships, market diversification, upgrading technologies, joint ventures, amalgamation, and international alliances.
Credit syndication: They provide expert assistance with project planning, and loan applications needed to obtain both short- and long-term credit from different businesses and institutions, etc.
Handling government consent for industrial projects: These banker consultants finish all paperwork for their clients and give the government permission to grow, modernize, and start new businesses.
Assisting small companies and entrepreneurs: Supporting their consumers in making the most of this chance by providing advice and resources regarding market prospects, government policy, grants, discounts, and start-up and small business opportunities.
Reviving sick units: Aid in reviving manufacturing facilities that are disabled. They have meetings with the Industrial and Financial Restoration Council as well as other long-term financing organizations.
Portfolio management: Advising their clients, usually institutional investors, on investment decisions. They offer fund investment services, buy and sell shares, and both.
Corporate restructuring: They are made up of selling, disinvestment, mergers, and acquisitions. These procedures involve thorough planning, deliberative talks, the delivery of numerous documents, and drawn-out legal formalities.
Services Provided by the Merchant Banking Firms
Merchant banking helps businesses run more efficiently by combining banking services with consulting knowledge. Consultants provide advice on marketing, legal issues, and finances. Some of the services provided by the Merchant banking firms are as follows.
Project Counselling
These merchant bank service providers conduct a thorough review of the project by identifying the key areas suggesting necessary changes and evaluating the project’s chance of success. Factors like the project idea, market sustainability, and financial aspects are considered to get the financing.
Focus on Improving Brand Image
Helping organizations to build a strong image to enhance their performance and reputation among the stakeholders and investors. They offer guidance on product analysis, market demand, and government policies and recommend discontinuing unprofitable products.
Assistance in procuring loans
By creating loan applications and project reports, merchant banks help retailers and business owners get loans. They monitor application processes, assist in locating appropriate financial institutions, and guarantee adherence to legal requirements.
Additional services
To suit particular needs, certain business valuation firms provide specialized services like corporate counselling on mergers, tax matters, hiring staff, and auditing.
#Wrappingup
Merchant banks offer capital and loans to businesses. They might also assist their clients in structuring significant international transactions or offer consulting services. The services offered by merchant banks differ from those of investment and retail banks. Although they might have retail banking divisions, they usually don’t offer general public banking services.