Merchant Advisory Services: Services and Roles
Merchant advisors provide diverse services including underwriting services, loan syndicates, financial management services, and fund raising. We are distinct from retail and corporate banks because we target corporate organizations, governments and HNWI at measurable risks. Our primary activities include capital market support, large project management, and enhancement of business through proper financial engineering.
Let us contribute to your financial successwith an individualized plan tailored to achieve your goals.
What do Merchant Advisors provide?
We offer banking services to improve and maximize the value of your firm, which allows real services to our clients. We can assist with large-scale corporate affairs, or act as a bridge between business and investment. Let us mobilizes funds in business enterprises and offer technical assistance in the collaboration of businesses.
Merchant advisors coordinate with corporate customers and offer industry-specific solutions on equity capital raising, securities issuance and distribution including initial public offers and issuance of strategic recommendations and advisory services. We help in the growth and reorganization of the companies by providing capital and advisory services.
Merchant Advisory: A Comprehensive Guide
Types of Merchant Advisory Services
1. Corporate Finance Merchant Banking
Merchant banks offer various corporate finance services, including:
- Raising Capital – Assisting companies in securing funds through equity or debt issuance.
- Mergers and Acquisitions (M&A) – Advising on company mergers, acquisitions, and deal structuring.
- Debt Syndication – Coordinating with multiple lenders to arrange large-scale debt financing.
2. Portfolio Management Services
Helping institutional investors and high-net-worth individuals (HNWIs) manage their investments through:
- Investment Advisory – Providing expert investment strategies.
- Portfolio Diversification – Spreading risk across various asset classes for better returns.
- Risk Management – Minimizing investment risks through careful planning.
3. Project Finance Merchant Banking
Supporting businesses and governments in financing large-scale infrastructure and industrial projects through:
- Feasibility Studies – Assessing the financial viability of projects.
- Capital Structuring – Arranging equity or debt funding.
- Negotiation & Execution – Managing the financing process from start to finish.
4. Underwriting Services
Ensuring the successful issuance of securities, including:
- Underwriting Equity – Buying and reselling shares in public offerings like IPOs.
- Guaranteed Debt – Covering any unsold portions of debt securities.
5. Advisory Services
Providing strategic guidance to businesses for growth and restructuring, such as:
- Strategic Planning – Long-term financial planning for companies.
- Restructuring – Optimizing a company’s debt and equity structures.
- Valuation Services – Assessing a company’s worth in case of mergers or fundraising.
6. Trade Finance
Helping businesses engaged in international trade through:
- Letters of Credit – Ensuring payments for exported goods.
- Export and Import Financing – Providing funds for international trade.
- Foreign Exchange Management – Managing currency exchange risks.
7. Loan Syndication
Arranging large corporate loans by collaborating with multiple financial institutions for:
- Large Corporate Loans – Funding business expansion projects.
- Bridge Financing – Providing temporary funding until permanent financing is secured.
8. Wealth Management
Offering financial planning and asset management services to HNWIs and corporations, including:
- Financial Planning – Tailored strategies for wealth growth.
- Investment Management – Managing assets and optimizing tax benefits.
9. Issue Management
Assisting companies in raising funds through:
- IPO Management – Handling regulatory compliance and marketing for public offerings.
- Private Placements – Raising funds privately from institutional investors.
10. Leasing and Hire Purchase
Providing asset financing solutions such as:
- Leasing – Renting equipment and machinery.
- Hire Purchase – Enabling businesses to acquire assets with installment-based payments.
Key Functions of Merchant Advisors
Underwriting of Securities
Merchant banks guarantee the sale of new equity and debt instruments, reducing risk for issuing companies.
Loan Syndication
They bring together multiple lenders to fund large infrastructure or corporate projects.
Project Finance
Merchant banks provide long-term financing solutions for large projects while minimizing financial risks.
Corporate Advisory Services
Helping companies with mergers, acquisitions, joint ventures, and business restructuring.
Fundraising and Capital Restructuring
Assisting businesses in raising funds and creating a sound capital structure.
Mergers and Acquisitions (M&A)
Guiding businesses through M&A transactions, including valuation, structuring, and legal compliance.
Wealth Management
Providing portfolio management, estate planning, and investment strategies for affluent clients.
Top Merchant Banking Services
Equity Financing
Helping businesses raise capital through private placements, IPOs, and rights issues.
Debt Financing
Designing debt securities, bonds, and loans for businesses.
Private Equity
Assisting companies in securing private investments instead of public funding.
Mergers and Acquisitions Advisory
Providing end-to-end M&A support, including deal structuring and legal compliance.
Venture Capital Services
Connecting startups with venture capital investors and providing business consultancy.
Portfolio Management
Handling diversified investment portfolios for individuals and institutions.
International Financial Services
Assisting businesses with cross-border financing, foreign investments, and currency risk management.
Roles of Merchant Advisors in the Financial System
1. Facilitating Capital Formation
Merchant banks help businesses raise funds by managing equity and debt issuances.
2. Boosting Economic Growth
By supporting mergers, acquisitions, and business expansions, merchant banks contribute to economic development.
3. Supporting Corporate Restructuring
They help companies optimize their financial structures and improve competitiveness.
4. Providing Expert Financial Advisory
Their specialized financial knowledge allows businesses to make informed investment decisions.
5. Encouraging International Trade and Investment
By simplifying global transactions, merchant banks enable businesses to expand internationally.
6. Risk Mitigation
They assess and minimize risks in large financial transactions such as M&As and project financing.
Benefits of Merchant Advisors for Businesses
Access to Expertise
Businesses benefit from merchant banks’ deep knowledge of financial markets and corporate finance.
Custom Financial Solutions
Merchant banks tailor financial services to meet the unique needs of each business.
Enhanced Capital Availability
They help businesses secure capital from equity, debt markets, and financial institutions.
Strategic Advisory
Guidance on mergers, restructuring, and financial planning enables long-term business success.