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Role of the investment bank

Source: www.nasdaq.com
Topic: Bank Investment

Sort Desciption: Mark Connelly, Tom Fox and Daniel Klausner, UBS Investment Bank ..... bilities that a big investment bank can provide. ...

Content Inside: UBS has a wealth of knowledge about all aspects of listing on the U.S. securities markets and can provide ongoing advisory services throughout the entire process. Role of the investment bank Mark Connelly, Tom Fox and Daniel Klausner, UBS Investment Bank 2 A guide for North American companies to listing on the U.S. securities markets 15 Perhaps more than any other participant in the IPO process, the investment bank is an essen- tial player in the success of the offering. Indeed, the investment bank assists the issuer in a number of critical functions: analyzing the industry and company to determine if there is a demand with investors for such a company, structuring the offering, valuing the company and developing the ‘story’ to market the offer- ing to investors. In a sense, the investment bank quarterbacks the deal; heading the issuer’s team of professional advisors and coordinating their roles to ensure that all busi- ness objectives are met and the company suc- cessfully completes the IPO process. The advantages of going public . An investment bank’s first order of business is to assist the company in sorting out the rele- vant issues and determine if an IPO indeed makes sense and is feasible. Among the main advantages for going public are the following: Access to increased funding A successful IPO creates immediate access to the public market, potentially the deepest source of corporate funds for any company. In addition: • Going forward, the company will have access to worldwide capital markets through sec- ondary equity offerings and debt issues; • By balancing equity and debt, listed compa- nies can enjoy greater flexibility in funding and more favorable borrowing terms; and • By tapping the vast pool of capital available through the U.S. securities markets, a compa- ny can build up a broad investor base, thus ensuring a diverse and balanced ownership structure. This may help to stabilize the share price, especially during marke ...

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