Corporate or Financial advisers are involved in company mergers, acquisitions and changes in ownership. A job in corporate finance involves dealing with finance providers, lawyers, researchers and other key professionals.
What is corporate finance?
The definition of corporate finance varies considerably across the world. In the US for example, it is used in a much broader way than in the UK – to describe activities decisions and techniques that deal with many aspects of a company’s finances and capital. In the UK the terms ‘corporate finance’ and ‘corporate financier tend to be associated with transactions in which capital is raised in order to create, develop, grow or acquire businesses.
It is often associated in the UK with some degree of change of ownership in a business, connected to a corporate transaction that leads to the creation of a new equity structure or shareholder base, and the related issue, underwriting, purchase or exchange of equity (and related warrants) or debt.
Types of transactions:
- Raising seed, start-up, development or expansion capital
- Mergers, demergers, acquisitions or the sale of companies
- Management buy-outs or buy-ins of companies, divisions or subsidiaries
- Equity issues by companies, including flotation on the stock market
- Raising debt and restructuring debt.
What is involved?
Corporate advisers tend to work in investment banks, accountancy or professional services firms or at independent advisory firms, and act as advisers on all of the transactions listed above.
Business Recovery /Insolvency
Business recovery experts help guide businesses through difficulties and towards a successful future, whereas insolvency experts guide business through the insolvency, selling off the business’ assets and paying creditors.
Mergers & Acquisitions
Mergers & Acquisitions advisers develop expertise in a given industry and give advice to clients on buying, selling, structuring capital and debt raising.
Commercial understanding and strategic thinking are crucial to this line of work, along with interpersonal and communication skills and team working skills.