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venture capital:

a) venture capital is long term risk capital to finance high technology project which involves riskbut at the same time have strong capability for growth.

b) venture capital also called as "financing of innovation".c) venture financing involves risk taking on the part of investment banker since this kind of

financing is needed by early-stage companies who want to grow faster. such businesses may

also close down and the investment bank can also lose the investment made in company.

d) investment bankers do not provide venture capital to any type of business. They provideventure capital only when they find certain required characteristics in the business model and

financing structure of the company.

corporate restructure:

a) corporate restructuring is wide term that covers changes limited to a particular company ormore than one company in single transaction.

b) corporate restructuring can be internal to a company or external to a company.c) Example of internal restructuring is setting up separate division of responsibility. Example of

external restructuring is setting up subsidiary under a company.

d) these are done from time to time according to the changing business environment and businessactivity.

e) preservation and increasing shareholder value is main factor that helps in increasing corporateperformance and therefore companies are frequently in process of reorganizing their business

structure to grow and increase value.

f) Investment banks are appointed as adviser by corporate bodies that wish to restructurethemselves.

g) The investment bank make and execute restructuring plans from financial perspectiveh) Restructuring plans require the collective effort of several other professionals, including

accountants, legal advisors, attorneys, company secretaries, management and HR experts.

i) Investment banks co-ordinate with all these professionals in executing restructuringtransactions for their clients.

j) Complex restructuring transactions need expert advise and assessment of issues involved fromstrategic, financial transaction, statutory, accounting and tax prospoectives.

Merger and acquisitions :

(a) Mergers means combining two firms into one.

(b) Acquisitions means acquiring a business.

(c) Mergers and acquisitions are the most important business segments for investment banks after

management of public offers.

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(d) Globally, in traditional days of investment banking, the segment of mergers and acquisitions,

contributed to a good amount of share of the investment banks, sometimes even became the largest

revenue system.

(e) An investment banker plays a very important role of transaction advisor in a merger and

acquisition transaction.

(f) This consists of understanding the requirements of the client and structuring the transactions

accordingly.

(g) Investment bankers pay a two-fold role in mergers and acquisitions -

y Advising the client on merger or acquisitiony Executing the transactions of mergers and acquisitions.

(h) Hence, the main areas consist of forming the transaction and deal structure, valuation, identification

of other party to the transaction either from the buy side or the sell side and helping in the execution of

transaction.

(i) Investment banks play a comprehensive role in mergers and acquisitions.