Investment banking

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The Investment Banking area is one that integrates the global coverage of large corporations, infrastructure funds, sovereign funds, financial organizations, venture capital, public issuers and banks, as well as M&A teams and own capital markets.

Investment or commercial banking, It is responsible for obtaining funds to finance specific global investment projects for clients who request it, through the issuance and sale of fixed and variable income securities in the capital markets. Investment banking also offers different types of advice in all processes and company merger rights of the same, in the acquisition of one company by another, and in other financial reorganizations.

Investment banks in the United States, they generally specialize in the negotiation and issuance of securities, such as shares, and do not accept direct deposits from the public or grant any credit. In turn, in the UK, Merchant banks perform a similar function, But, unlike investment banks in the United States, Merchant banks carry out traditional banking operations, accept deposits from conventional clients and grant them loans and other services.

Here in Spain, the investment banking market has traditionally been controlled by foreign entities, generally the United States.

Some of the services offered by investment banking

Raising capital: Entre las cuales se encuentran las actividades de Subscription, que es la emisión y colocación de acciones privadas de renta fija, Financiamiento de Proyectos, que es el financiamiento de proyectos, financiamiento de proyectos de salud pública y control de contaminación, mercado secundario de hipotecas, creación y registro de compañías, capital riesgo, desarrollo de proyectos de construcción y financiamiento de diferentes tipos de recursos naturales.

The Capital Administration is also carried out: which is the management of the portfolio of shares held by pension funds, trusts, public funds and private investments, investment plans, property management.

Professional advice

• Securities, stock management, fixed income papers and options to organize strategies for the configuration and management of your portfolio.
• Company development, such as acquisitions of each other, mergers between them, corporate strategies, planning a financial picture and market research.
• Investment advice, financial planning tax advantages.
  as personal assets.
• Money and capital markets
• Trading of conventional shares, preferred shares and corporate bonds
• Bond negotiation.

There are several financial transactions and products that you can use to get the resources you need. The choice of these instruments depends on the specific needs regarding capital, the amount and period of investment required, the operational and legal nature of the company or project promoted, the interests of the applicants and many others. factors that influence the choice of the optimal transaction for you. In this way, The services offered by Investment Banking are designed to respond to
each particular financial need.

Some of these investment banking services

• Financing of new projects
• Financial valuation of a company
• Issuance of securities
• Financial restructuring of a company
• Integration and Acquisitions of Companies
• Loan syndication

With the information previously exposed, it can be seen that Investment Banking not only serves as an intermediary between the investor and the company, Rather, it is the recognized agent who creates the existing structure in the business relationship and enables the transaction or capital acquisition to take place.

Why does Spain require Investment Banking?

Investment is the engine of progress in a country's economy, to the extent that it enables companies to carry out large projects to continue their growth and firm unification in the market, in turn, the investment generates a large amount of resources for the State to make more investments that increase the competitiveness of the country, such as as well as the welfare of society. From this dynamic, Investment Banking promotes the different flows of capital and resources in companies, at the same time contributing to the integral business development of the country and its social and economic progress.

Commercial banking is the most popular among citizens.Esto es lo que se realiza a través de las típicas sucursales bancarias. El principal negocio de estos, se trata de pagar el dinero que depositan sus clientes y cobrar por los créditos que otorgan a las persons. La diferencia entre lo que cobra a diario y lo que paga debe ser positiva, puesto que este es su beneficio principal.

To this is commonly added another type of transactions such as credit cards, capital transfers, guarantees, pension plans, investment fund commissions, stock market advisory, among others.

Investment banking, instead of the above, is mainly engaged in taking companies out of Stock market, merges companies, designs and executes takeover bids, it sells entire divisions between companies, issues bonds, carries out trading operations in financial markets for very large amounts, among many others. It does not have a large branch network, but concentrates its functions in a few large offices, to streamline procedures and processes.

Investment banking benefits

The benefits offered by commercial banking are quite stable, in other words, they vary very little. It is very difficult for commercial banks to incur losses unless there is a global economic crisis. If in a country commercial banks start to lose money, there is a complete crisis.
Instead of, the benefits of investment banking are much more variable. In the fruitful moments of the economy, investment banking tends to earn much more money than commercial banking does, but in certain slowdown quarters, investment banking tends to suffer large declines in profits and even record losses constantly.

When investment banking is in a state of lossesIt does not mean that the country is sunk or in crisis. This is relatively common in sudden times of slowdown in economic flow in global markets.

Invest money in Banco Popular, As an example, it is totally different from investing in Merrill Lynch, even though they both know each other as banks. In Spain there are not many pure investment banks. Some large Spanish banks, such as Santander and BBVA, have divisions dedicated to investment banking, but they are relatively small in size compared to the totality of operations and divisions that these banks have.

And what is more, The type of investment banking that these do is less risky and less cyclical than that of investment banks in the United States. For this reason, the negotiating positions of Spanish banks have a very low risk compared to those of US banks.

An investor should astutely think of commercial banks and investment banks as two completely different types of companies that are useful for finance, and knowing how to use both results in a strong business economy.

• GBS Finance is an example of an investment bank that was founded in 1991 and with more than 25 years of experience, GBS Finanzas has two main areas of financial activity:
• Corporate finance: Which includes everything related to company mergers, purchases of raw materials, capital markets and debt advice.Family office: She is in charge of comprehensive advice for large estates.

GBS partners and a large part of the professionals who work there, have extensive experience in international organizations, first level such as First Boston, Goldman Sachs, Credit Suisse, UBS Warburg, Deutsche Bank, Bank of America, and also in the main law firms. and audits.

At the Corporate Finance level, there are many services

• Restructuring of the shares of a company.
• Leveraged trading like LBO, MBO, MBI, etc.
• Divestments and acquisitions of companies
• Mergers or combinations of commercial actions

DEBT SERVICES:

They support with advice and negotiation of solutions for an independent financing of corporate operations:

• Loan refinancing
• Purchase financing
• Direct loans
• Basic finance
• Private locations

CAPITAL MARKET:

• OPA defense
• Equity Opinions
• Preparation of companies to go public (pre-IPO)
• Capital increases

STRATEGIC ADVICE

Corporate restructuring and strategic alliances:

An important part of all the Spanish companies that at this moment GBS Finanzas clients such as Telefónica, Gamesa, Almirall, Repsol, Endesa, Iberdrola, Abertis, Ebro Foods, OHL, Sacyr, ACS, Indra, Inmobiliaria Colonial, etc. are listed on the Stock Exchange.

The support and advisory model that GBS Finanzas has called Family Office it is quite clear, simple, transparent and globalized. Above all, what is sought is to preserve the investor's capital and make the most of the structure of their investments regardless of the country where their money is deposited.