

Along with this, the corporate finance people at the investment bank will help the M&A deals go through as well. This can comprise helping to manage investments or even suggesting a mergers and acquisitions (M&A) strategy. In simple words they act as a broker or consultant when companies need to raise capital, are considering to merge or buy another company or want to issue debt – all of which may enhance the value of their company. Corporate finance in investment banks is different from departments like sales or trading, as they are not trading or making markets but rather they help companies with certain financial situations. There are various roles that corporate finance plays, which are very interesting and challenging, one of the main roles is that of being a financial adviser.

Corporate finance is one of the most important part of the finance domain as to whether the organization is big or small they raise and deploy capital in order to survive and grow. Read on to get a gist of all you wanted to know about Corporate Finance and any inhibitions you have had regarding it.īusiness involves decisions that have financial consequences and any decision that involves the use of money is said to be a corporate finance decision. This same concept applies to corporations. You would not only require finance to start your business as promotional finance but also as development finance to sustain in the long run. There are various sources through which you would raise funds such as your personal savings, borrowing from friends, family, etc. Any economic activity, whether big or small, requires finance, rightly considered to be the lifeblood of business.

Let me ask you this, apart from the skills and ideas that you would require to begin with it, what is the other most basic element required? Yes, it’s quite simple the answer is money. But before we dig into the details of this broad area, let’s take this example. I am sure you would be interested to know why. Corporate Finance forms the most basic component of how a business is run. You would have heard a lot about the term “Corporate Finance”, if you belong to the finance domain.
