A ROLE OF INVESTMENT BANKS IN MERGER AND ACQUISITION

A ROLE OF INVESTMENT BANKS IN MERGER AND ACQUISITION

*Adarsh B.R

ABSTRACT: An investment bank is a financial institution that provides a wide range of services to corporations, governments and other organizations. one of the key functions of investment banks is to facilitate merger and acquisitions. There are several reasons why investment bank plays a crucial role in merger and acquisition throughout a company’s life cycle. Top companies understand that acquiring organization is cost-effective than building internally, in addition company wants to merge or acquisition, then the company must address technical aspects such issues as finding bidders or targets, communication with bidders or targets, acquisition of financial information and negotiation with legal, technical and financial due diligence advisors. all these things cannot be done by company alone because lack of expertise and knowledge, so company will hire investment banker who will assist the company throughout the process of merger and acquisition. this study reveals the role of investment banker during merger and acquisition. the present study is descriptive in nature and used secondary data. It concludes that role of investment banker in merger and acquisition is very significant.

Keywords: Growth, Stake, Market, Valuation, Financial, Deal, Billion, Negotiation, Bank