‘BEHIND THE CHINESE WALL’
corporate adj. 1. forming a corporation; 2. forming one body of many individuals; 3. of or belonging to a corporation or group.
finance noun 1. the management of (esp public) money; 2. monetary support for an enterprise; 3 (in pl) the money resources of a state, company, or person.
The Oxford English Dictionary, 2nd Edition, 1989 by permission of Oxford University Press
Thus, corporate finance – a phrase relating to how companies obtain and use finance to grow their business. In the City, on Wall Street and wherever banks and investment banks congregate, corporate finance takes on a specific meaning.
This book has three goals: to provide a description of some of the major corporate finance transactions; to describe the role of corporate financiers in such transactions; and to introduce the main valuation tools used in the transactions.
CORPORATE FINANCE IN INVESTMENT BANKING
Corporate finance tends to become more narrowly focused when one talks to an investment banker or investment bank. Corporate finance departments advertise their abilities to provide advice and complete transactions in the following areas:
• Mergers, Acquisitions and Divestitures (M&A).
• Financial Advice (capital structure and fairness opinions).
• Flotations/Initial Public Offerings (IPOs).
• Further Equity Offerings.
Note that the last two in the list, relating to equity fundraising, are often placed in a separate department called Equity Capital Markets (ECM) (see ...