30 August 2021
Corporate financing is a broad term covering the finance division that deals with how companies approach funding sources, reach investment decisions, and their capital structure. It aims to maximise shareholder value through financial planning for both the short and long term. A corporate finance advisor may be charged with helping a company access new sources of finance, which can be used to achieve long term company objectives.
The meaning of corporate finance can vary depending on where you are in the world. While it tends to have a broader remit in the US, it’s more focused in the UK. Corporate financing in the UK context will generally refer to a range of approaches, techniques and decisions that deal with capital allocation. This includes investing and divesting assets, generating and managing new revenue streams, and funding new activities.
In the UK, the term will usually refer to transactions where existing capital is used, and new capital is raised to create, develop and grow new projects. It may also refer to raising capital to acquire other businesses. Corporate financing might also be associated with transactions that ultimately lead to a change of ownership or the creation of new capital structures.
There is a range of different roles that may fall under the broader heading of corporate finance. In accountancy practices, banks, investment firms and law companies, you may find corporate finance advisors. They also operate as independent professionals, and in any of these contexts, the services they offer may be called financial advisory, deal advisory, transaction advisory services or corporate financing advisors.
You are most likely to find mergers and acquisitions (M&A) advisers at investment banks. Corporate brokers will tend to focus on transactions in capital markets, including raising new finance for IPOs, acquisitions and secondary equity issuance.
In accountancy firms, you may find transaction services specialists. These will be appointed either by a business, investor, lender or someone in the process of acquiring a company to carry out a range of transaction-related services.
They will pay particular attention to financial and other forms of necessary due diligence. The work and its scope can be varied and may differ considerably between clients. It will be driven by the requirements of the buyer and investor or by the regulatory framework in which the transaction is taking place.
Solicitors may also provide corporate financing advice, particularly regarding issues of legal due diligence. If transactions are taking place on capital markets, reporting accountants will be appointed by issuers. They will be tasked to provide opinions and due diligence relating to the information that is published in a shareholder circular or prospectus. These opinions may be published in an investment circular, or they might be kept private to the parties involved.
The experienced team of investment bankers and finance professionals at Global Investment Strategy can deliver a bespoke corporate finance service to meet your particular requirements. We can act as both prime broker and advisor to AIM and other publicly listed companies.
Here at Global Investment Strategy, our team has over a century of combined experience at Tier 1 companies and come from a range of different academic and professional backgrounds.
To find out more about our services, call +44 (0)20 7048 9400 or email info@gisukltd.com. Back to News
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