IB Presentation Abridged

8/4/2019 IB Presentation Abridged

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December 2010

Investment Banking - Opportunities for

Chartered Accountants


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Programme Agenda

Session 1 Role of Investment Banking in Business Finance

Session 2 Investment Banking Boom

Session 3 Functional Scope of Investment Banking

Session 4 Professional Skill-set for Investment Banking

Session 5 Opportunities for CAs in Investment Banking


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Session 2

Investment Banking inBusiness Finance


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CA Raghunath AFounder & MD, akasam consulting private limited

Has over 18 years of experience in investment banking

Key focus areas are Private Equity syndication, M&A Advisory and

Capital Markets Advisory

Distinguished guest faculty at several eminent institutions like JNIDB ,

IPE and other industry forums

He is a fellow member of the Institute of Chartered Accountants of

India and an associate member of the Institute of Cost & Works

Accountants of India

A tennis enthusiast , a person with never say NO attitude and strong

will power


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Business Life Cycle

Business Roadmap

Inception

Stabilisation

Market

Acceptance

Growth

Consolidation

Market

Dominance

Decline/ Repositioning


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Globalization Impact on Business

PositivesAccess to

International

Markets

MarketEconomy

Faith on Private

Capital

Movement of

Capital

NegativesEconomic

Interdependency

Global Conflicts,

trade disputes &culture disputes

Sharing business

to empower own

economies


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Finance as Integral Business Input


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Business Finance

Business

Finance

Strategic

Debt EquityMix

WealthOptimisation

Operational

RaisingEquity

Raising Debt


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Scope of Business Finance

Estimating Fund Requirement

Selection of Source of Finance

Capital Rationing Decisions

Determining the Capital Structure

Cash Management

Surplus Allocation and Management

Financial Control

Business Finance


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Business Finance Professional Skill set

Strong analytical and mathematical skills

To have project and time management skills

Knowledge on various capital structures, to suggest

suitable capital structure

Good inter personal skills

Communication and networking skills

Maintaining relationships with investment community

Up-to-date knowledge on various sectors


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Role of Investment Banker

Estimating Fund Requirement

Selection of Source of Finance

Capital Rationing Decisions

Determining Capital Structure

Cash Management

Surplus Allocation and

Management

Financial Control

In the context of each of these functions


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Session - 4

Investment Banking Functional Scope


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CA Harsha Vardhan MAssociate - Debt, akasam consulting private limited

Has 4 years of experience in corporate finance advisory services

Handles debt syndication and has worked on a number of funding

transactions for businesses in diverse sectors.

His areas of focus include telecom, infrastructure and manufacturing

sectors.

Is an Associate Member of the Institute of Chartered Accountants of

India and also an Associate Member of the Institute of Cost & Works


A movie buff and enthused about analyzing stock markets


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Praveen MAssociate - Equity, akasam consulting private limited

Has 4 years of experience in the financial services industry with special

focus on Equity Syndication and Equity Research.

Has handled several large and complex engagements in Private Equity

Syndication

A Graduate in Commerce and a budding Chartered Accountant

When not responding to mails, selling ideas and working deals,

Praveen goes out on adventure trips and loves listening to music


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Core Investment Banking Functions

Core IB Functions

Traditional IB Activities

Raising Capital

Ancillary Activities

Corporate Advisory

Debt

Equity

Sales & Trading

Others

Research

M&A Advisory

Restructuring

Advisory


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Raising Capital

Capital Market

Investment bankers are the intermediaries between users of capital

and providers of capital. Capital can be

Debt

Private EquityBanks & FIs

Equity


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Raising Capital - Debt

Funding Types

Project Finance

Working Capital

Acquisition

Restructure

Debt

Is an amount owed to a

person/organization for funds

borrowed.

Fund Based

Term Loan

Working Capital

Non-Fund Based

Letter of Credit

Bank Guarantee

How?


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i i i l i l k


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Raising Capital Capital Markets

Debt

Issue of Debentures

Issue of Corporate Bonds

Issue of Money Market Bonds

Issue of Government Bonds

Fund Raising in Capital Markets

Equity

Initial Public Offering (IPO)

Follow on Public Offering (FPO)

Private Placements

Preferential Allotments

Rights Issue

Hybrid

Convertible Preference Shares

Convertible Debentures

Convertible Bonds

Fund raising in capital markets can be through any of the above modes

Issue of each of the instruments require separate and elaborate procedure to be followed

Investment Banker has the requisite skill set and infrastructure to mobilize and complete the

transactions

R i i C i l P i E i


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Raising Capital Private Equity

What is PE

Private Equity consists of investors and funds that

make investments directly into private companies.

Contribution of capital towards equity

Characteristics of Private Equity:

Unsecured in nature

Dilution of promoters stake

Incisive evaluation of company

Management participation

Higher cost of capital

R i i C it l P i t E it


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Raising Capital Private Equity

Why PE?

How

Growth catalysts

Facilitating organizationalevolution

Strategic inputs/market

intelligence

Helping build process

/systems to ensure longevity

and robustness

Improving Corporate

governance

Adding to the organizational

financial acumen.

Funding Types

Angel Funding

Early Stage Funding

Growth Equity

Late Stage Funding PIPE Deals

Buyout Equity

P i t E it T ti Fl


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Private Equity - Transaction Flow

Business Mapping

Strategy Formulation &Crystallizing Requirement

Identification of PE Funds

Sharing of Information

Deal Negotiation & Term

sheet finalization

Due Diligence

Deal Structuring andDocumentation

P i t E it E l ti F k


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Private Equity - Evaluation Framework

Industry & Space

Promoter & Management

Team

5

4 3

2

16

Companys positioning,

strategy & differentiation

Competitive Landscape

Business Model

Exit Route

Corporate Advisory


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Corporate Advisory

Corporate Advisory Services to assist management in decision

making

M&A Advisory

Identification of opportunities

and counterparties, both

strategic and financial.

Seek to eliminate a competitor

Increase efficiency

Diversify its products, services

and geographical market

Reduce tax effect

Market Dominance

Restructuring Advisory

Advising and Implementing

Solutions for recovery and

repositioning of a corporate.

Change of ownership or

ownership structure

Merger / Demerger

Response to a crisis or majorchange in the business Debt

restructuring.

Rationale

Meaning

M&A Advisory Transaction Flow


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M&A Advisory Transaction Flow

Identification of Target

Solicitation of Target

Quantification of Synergies

Determination of Value

Due Diligence

Deal Structuring

Co ordination

Documentation

Integration Planning


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Session 4

Professional Skill-set forInvestment Banking


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Vijay Grover

Associate - Equity, akasam consulting private limited

Has over 2 years of experience in corporate finance advisory services

Handles client advisory on issues of business strategy, private equity

and providing commercial due diligence support to investors assessing

opportunities.

Prior to akasam, he was a manager in ING Vysya Bank for 3 years

A Post Graduate in Commerce from Osmania University, a silver

medalist Management Graduate in Finance from the ICFAI Business

School and also a Certified Associate from the Indian Institute of

Banking and Finance

In his spare time, he likes reading, tracking the stock markets and

partying hard

Keys to Success as an IB Associate


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Keys to Success as an IB Associate

Develop credibility early with team

Effective Leadership and authority delegation.

Time management & multiple tasking skills

Understand, summarize and communicate

transaction (both up and down)

Develop a rapport with the analysts and

communicate the big picture

Manage expectations and define

responsibilities

Get your hands dirty

Dont be afraid to ask questions

Proactive client interaction

Educate the team and exceed expectations

Presenting materials with mistakes or typos

Waiting to get involved

Failure to anticipate

Not leveraging firms resources appropriately

Getting lost in the detail and missing the big

picture

Insubstantial interaction with clients Does not properly delegate work

Losing confidence under pressure

Lack of attention to detail

Lack of follow through

Lack of involvement in recruiting and training

activities

Goals Pit falls

Skill-set of Investment Banker


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Skill-set of Investment Banker

Strong analytical and mathematical skills

Good knowledge of the business world and latest market developments

Ability to keep calm and work under pressure

Attention to detail

Project and time management skills

IT competency

Good inter-personal skills

Tolerance for taking risks

Ability to work in a team environment

Ability to demonstrate effective leadership

Ability to take initiative, good networking skills

Good oral and written communications skills

Adapt to different situations and cultures of different countries.


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Session 5

Opportunities for CAs inInvestment Banking


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CA Raghunath A

Founder & MD, akasam consulting private limited

Has over 18 years of experience in investment banking

Key focus areas are Private Equity syndication, M&A Advisory and

Capital Markets Advisory

Distinguished guest faculty at several eminent institutions like JNIDB ,

IPE and other industry forums

He is a fellow member of the Institute of Chartered Accountants of

India and an associate member of the Institute of Cost & Works


A tennis enthusiast , a person with never say NO attitude and strong

will power

Professional Skill-set of CA


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Professional Skill set of CA

Accounting

Taxation

Costing

ManagementAccounting

Auditing

Business Laws

Traits of CA as Result of Academics


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Traits of CA as Result of Academics

Conceptual Approach

Ability of Analysis of Financial Statements

Commitment & Hardwork

Ability to Inter Relate

Working under Pressure

Due Diligence Skill

Risk Assessment Skill

Finance Professionals in Investment Banking


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Finance Professionals in Investment Banking

InvestmentBanking

CAs

MBAs

Others

CFAs

Skills to Back up


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p

Ability to Communicate

Ability to take Initiative

Ability to Communicate

Ability to Understand Business

Willingness to Travel

Investment Banking Space


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g p

IB World

InvestmentBanks

TopLeague MidMarket SmallBoutique

InvestmentFunds

PE Funds

HedgeFunds

ProprietaryFunds

BuyoutFunds VC/AngelFunds ProprietaryFundsMutual/Pension

Funds


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Thank You

IB Presentation Abridged

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