Corporate Finance Advisers

Corporate finance advisers are widely used by companies. This chapter describes the relationship in detail. We also provide a practical framework when dealing with corporate finance advisors to efficiently negotiate, select, coordinate and manage advisory processes. The company’s Chief Financial Officer (CFO) has the primary contact with a corporate finance department. In particular, larger listed companies regularly receive inquiries from corporate finance advisers from domestic and foreign investment banks about ideas and proposals for transactions. Other companies automatically choose their regular investment bank to solve a specific corporate finance task, although the trend is definitely to have several corporate finance relationships. Listed small-medium enterprises (SMEs) usually have practical experience with corporate finance advisers from their initial public offering (IPO) or a subsequent increase in their share capital. They may also have completed an M&A transaction. There is no doubt that collaborating with corporate finance advisors can be lucrative and profitable for a company. Most companies are inexperienced in negotiating fees with corporate finance advisers and are not fully aware of its alternative options. Therefore, we provide some helpful insights as how to understand their business model.