Even the most prominent Investment Banks and Advisory firms require the services of ECM Support (Equity Capital Market Support) to work smarter. Before one goes into detail, it is very important to know what ECM Support is.
Simply put, it is support provided to financial institutions in the Equity Capital Market. The Equity Capital Market is how organizations and companies generate funds for their needs. The need for funds (liquidity) in the global financial market has resulted due to high volatility.
When companies need funds, they often turn to investment banks and advisory funds to help them raise the needed amount. To be able to do so, investment banks and advisory firms rely on ECM Support so that they can optimally help companies.
Hence, the ECM Services provided to Investment Banks cover many services. These services are extremely important since they guide and support investment bankers to make the best decisions for both the IB and the client. From doing market research to preparing and sourcing deals for IPOs and SPACs, ECM Support is key in assisting Investment Banks and Advisory Firms.
Benefits of ECM Support to Financial Institutions
ECM Support truly spares no measure when it comes to helping Investment Banks during the fundraising process. The “end-to-end” support offers plenty of benefits, such as assisting with vital services that include deal origination, market analysis, and IPO preparation from start to finish.
Let’s look at how it helps Investment Banks and Advisory Firms operate better.
Market Monitoring and Updates: The importance of real-time data must be recognized, especially if the market is volatile. With ECM Support, financial institutions know and understand market conditions better, which lets them serve clients better.
Investor Profiling and Database: Financial Institutions must identify potential clients who require fundraising services. ECM Support can access better opportunities to find suitable clients through data analytics and optimum databases.
Shareholder Analysis: Financial institutions must understand the makeup and motivations of their investors. The makeup of investors has a history of influencing the policies and intentions of an Investment Bank. It also helps devise current and future business strategies.
Deal Origination and Making: Using IPOs and SPACs is an extremely common way organizations and companies raise funds. As mentioned, ECM Support helps Investment Banks with the end-to-end process needed to find the best deals and conduct smooth transactions, such as helping find appropriate deals, correcting the deal structure, handling compliance and regulatory issues, conducting financial and market analysis, and more. They also provide the backbone for writing pitches and conducting roadshows, which helps attract potential investors.
Pitchbook: Pitchbooks help investment banks obtain clients. They are used as marketing tools to explain to clients why they are the best option. A pitchbook contains the investment bank strategy for an IPO or M&A structure that will help the client the best. ECM Support helps Investment banks find the right clients and craft an appropriate pitchbook.
Roadshows: The roadshow presentation is extremely important in the IPO process. Statistically, it is where institutional investors end up buying a large number of shares. Hence, the success of a roadshow presentation can determine whether an IPO will succeed. ECM Support helps find and market the selling points, such as a company’s growth prospects and competitive advantages, to attract maximum investors.
Newsletters: A very powerful email marketing tool, newsletters help investment banks and advisory firms find new potential clients. ECM Support helps investment banks craft the best newsletters and send them to appropriate audiences. It helps strengthen relationships and build loyalty with clients.
Equity Capital Market Support plays a vast and comprehensive role that helps Investment Banks and Advisory Firms operate better in numerous ways. From conducting market research & improving in-house operations and procedures, ECM Support is a key tool that even the most distinguished financial institutions use. There are even more services that ECM can provide, such as benchmarking and the use of case studies. These services all aim to help financial institutions make efficient and informed decisions.