Why would a company use an Investment banker?

Asked on

1 Answer | Add Yours

farouk23's profile pic

Posted on (Answer #1)

An investment banker is " an individual who works in a financial institution or investment arm of a corporation who is responsible for raising capital" or involved with the associated research and compliance necessary for raising capital.

A company may use an investment banker for a number of reasons:

  • They may need to raise capital an require his/her specialized knowledge and financial networks in order to raise the funds.
  • They may require merger and acquisitions advice and the necessary corporate compliance knowledge that are required.
  • They may require advice on corporate reorganization.
  • A company may want to go public and need advice on an IPO ( Initial Public Offering) and require the specialized knowledge of an investment banker in order to navigate the process. 
  • They may require an investment banker to conduct risk management, security analysis or alternative investment research. 

there are a whole host of other reasons for a company to use an investment banker and they are highly valued for the knowledge and independent professional opinion on corporate financial matters. 


We’ve answered 288,043 questions. We can answer yours, too.

Ask a question