An investment bank is a financial organization that assists individuals, companies, and authorities in lifting capital by underwriting and/or acting as the client's agency in the issuance of securities. An investment bank may furthermore assist businesses engaged in mergers and acquisitions and supply ancillary services such as market making, trading of derivatives and equity securities, and FICC services. Investment banks play a crucial function in the mergers and acquisitions method.
The investment bank�s function in mergers and acquisitions falls into one of either two buckets: trader representation or purchaser representation (also called goal representation and acquirer representation).One of the main roles of investment banking in mergers and acquisitions is to establish equitable worth for the companies involved in the transaction.Banks will furthermore source agreements by revising the market themselves and approaching businesses with their own strategic ideas.Another major roles investment banks play is to introduce new securities to market in order to finance M&A activity.