WHAT IS AN INVESTMENT BANK?

An investment bank provides advice and strategic assistance for complicated professional financial services for corporations, governments and sometimes individuals. This includes advisory services and strategic corporate finance advice for mergers, acquisitions, and a wide range of complex financial transactions, as well as capital-raising services – assisting clients in raising funds in the capital markets. Today, there are many complex ways for companies to raise money, and investment banks are specialists in advising on the different procedures and costs for each. Investment banks may also be involved in trading activities for equities, currencies, derivatives or other financial products.

Some investment banks have private equity or wealth management divisions alongside their advisory businesses. These companies are sometimes called “buy-side” firms and their businesses are typically separated from their advisory services.

M&A

Mergers and Acquisitions (M&A) is one of the specialties within investment banking. The term refers to advising on complex transactions whereby companies buy (‘acquire’) another company, sell themselves to buyers, sell a specific division (‘divest’), join together with another business (‘merge’) or acquire a division or assets from another company. How M&A advisory companies are organised Mergers and Acquisitions firms may be part of a larger financial services company or may be standalone independent companies. M&A advisory firms are organised in teams with certain specialities. Typically, firms are organised in one of the following ways:

• by client mandate: Some M&A advisory firms have different teams to advise their clients depending on what the client’s goal is. For example, they may have one team to advise their clients on selling businesses, a different team to advise on buying businesses, and another to advise raising funds for new ventures.
• geographically: Many investment banks have different teams focused on specific geographical regions, or countries, but operate across a wide spectrum of industries. For example, some banks have a UK team and a team for each country in Europe, the Middle East etc. instead of specific industry expertise.
• by industry: Some investment banks have teams focused on specific industries, such as Natrium Capital’s focus on chemicals and materials, and may operate regionally or across a wider international landscape. Natrium Capital is an industry specialist. It is an independent Mergers and Acquisitions (M&A) advisory firm specialising in providing high end strategic and M&A execution advice in the areas of chemicals – including fine chemicals and specialty chemicals, adhesives, engineering materials, paints, inks & coatings, biotechnology and sustainable technologies (cleantech). It operates across all major economies.

Within these categories, some firms have teams focused on marketing (also known as “pitching” for deals), while other teams are involved in the execution of live transactions.

It is an essential element of the Natrium Capital philosophy that we expect all Natrium Capital staff to be involved in both marketing new ideas and in the execution of those ideas. This ensures that there is continuity within the client service team – that the people that the client meets initially are there beside them throughout the transaction.

M&A Boutiques

An M&A boutique is a small independent corporate finance firm which is not part of a larger financial services organisation. A boutique offers specialised advisory and transactional services based upon a deep expertise in serving clients within its target markets. The opposite is sometimes referred to as a “bulge bracket” firm which offers a broad array of financial services.

The advantages of hiring a boutique are that these companies can offer their clients a truly tailored service based on specialist knowledge of the unique factors that impact on that marketplace, including deep knowledge of the companies (products, environmental impact, manufacturing issues, sales markets, management) and minimises the risk of conflicts of interest with other teams, as could occur within a larger organisation.

Unlike some larger financial firms which offer a multitude of different services, boutique firms are not remunerated for other financial interests. This allows boutique corporate finance firms to be free from conflicts of interest and to act solely in their clients’ best interests.

Natrium Capital is a specialist M&A boutique, offering independent advice focusing on the Chemicals and Materials sectors and and can deliver both both advisory and transactional services.

Our team are scientists first, most having degrees in chemistry or closely related sciences, before learning about finance and becoming bankers. That means that Natrium Capital has a high level of specialist industry insight extending across the chemicals and materials sectors and including fine chemicals and specialty chemicals, as well as in the technical aspects of completing transactions. Our staff have an unparalleled appreciation of the operational, regulatory and environmental factors affecting the sector as well as excellent financial skills. We assist in a wide range of deal types, including advising clients on buying other businesses and mergers, and in a wide range of international jurisdictions. Our core strength is in running complex, cross-border sales processes, drawing on our international expertise.

Natrium Capital‘s focus is entirely on providing excellence in M&A. Natrium Capital’s expertise is illustrated by the number of referrals for new business that come from existing clients. Natrium Capital can be brought in to act as a specialist advisor to a company’s management on a specific complex deal, alongside the company’s larger, day-to-day bank.