merchant bank


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Merchant bank

A British term for a bank that specializes not in lending out its own funds, but in providing various financial services such as accepting bills arising out of trade, underwriting new issues, and providing advice on acquisitions, mergers, foreign exchange, portfolio management, etc.

merchant bank

An investment bank that commits its own funds by taking a creditor position or equity interest in another firm. For example, a merchant bank may provide temporary financing for a leveraged buyout.

merchant bank

a BANK which offers a range of financial facilities and services to clients. The merchant banks are still involved in what was their original business, namely the provision of merchandise finance, in the form of ‘acceptance’ notes on BILLS OF EXCHANGE to importers and exporters to cover products in transit. They have extended their interests variously into investment management, stockbroking, MARKET MAKING and corporate finance (see VENTURE CAPITAL). In the latter capacity, merchant banks arrange new stock and share issues on behalf of corporate clients (see SHARE ISSUES) and UNDERWRITE such issues. Merchant banks nowadays play a particularly prominent role in advising corporate clients on MERGERS and TAKEOVER BID tactics and in putting together the financial terms and details of such deals. See BANKING SYSTEM, INVESTMENT BANK.

merchant bank

a BANK that offers a range of financial facilities and services to clients. The merchant banks are still involved in what was their original business, namely the provision of merchandise finance in the form of ‘acceptance’ notes on BILLS OF EXCHANGE to importers and exporters to cover products in transit. They have variously extended their interests into investment management, stockbroking, market-making (see MARKET MAKER) and corporate finance (see VENTURE CAPITAL). In the latter capacity, merchant banks arrange new stock and SHARE ISSUES on behalf of corporate clients and UNDERWRITE such issues. Merchant banks nowadays play a particularly prominent role in advising corporate clients on MERGERS and TAKEOVER BID tactics and in putting together the financial terms and details of such deals. See BANKING SYSTEM.
References in periodicals archive ?
In contrast, merchant banks will use the purchase order to finance an SME's growing sales, while providing the ability to earn incremental profit using 100 percent leverage.
Today, investors in merchant bank deals are realizing returns in excess of 100-percent in 12-18 month periods of time.
The merchant bank is more than a deal negotiator and money manager.
FSDH would like to seize this opportunity to welcome its stakeholders to the continued experience with FSDH Merchant Bank Limited.
Burrill & Company is a boutique merchant bank specializing in the life sciences industry that brings strong expertise in forming and optimizing strategic partnerships, especially in the international marketplace.
NIBC is a merchant bank focusing on client needs in the mid-cap segment in Western Europe with a global distribution network.
The Merchant Bank accounts will be converted to Bank South systems this weekend.
75 in Bank South stock for each share of Merchant Bank Corp.
The Merchant Bank was founded in 1987, and is a full-service community bank.
CONTACT: Henry Fullerton of Caldon, 809-926-7544, or Terry Thompson of Pillsbury, 612-330-4768/ CO: Pillsbury, Grand Metropolitan, Caldon Merchant Bank LTD ST: Minnesota IN: FOD SU:
Global is a merchant bank, which provides bridge loan services (asset back/collateralized financing), to companies across many industries such as oil & gas, mining, real estate, manufacturing, retail, financial services, technology and biotechnology.
Global and E & E are both Toronto based merchant banks.