Thursday, 18 August 2016

John Haag - What is Investment Banking?

Early in his career, John Haag worked with JP Morgan and the Bankers Trust, investment banking companies, gaining experience that served as the foundation of his financial skills. For those that don’t know what investment banking is and what their role is in the financial industry, here is a breakdown of their major functions.

To start, investment banking is made up of three main areas: the investment banking division, sales and trading, and asset management. When companies seek out a relationship with investment banks, they are looking to secure a financial partner that will help guide them through the complicated landscape of financing a business and managing its assets. Companies receive strategic planning advice that includes when the best time is to make a public offering or they receive advice on the subject matter of asset management.

The following types of deals are included in the investment banking product groups offered to companies:
  • Mergers and Acquisitions
  • Leveraged Finance
  • Equity Capital Markets
  • Debt Capital Markets
  • Restructuring
While industry groups focus on one specific industry, they carry out the different kinds of deals for any firm within the sector. The primary advantage of working with an investment banker is the relationship and contacts that are acquired in the relationship. The principle role of investment bankers like John Haag is to introduce lenders to the companies that are in need of capital by cultivating business meetings with venture capitalists and private investors.