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.
The merchant bank is more than a deal negotiator and money manager.
As such, there is a greater communication and reporting between the merchant bank and the investor.
The new starting line-up is headed by real estate merchant banks, firms who not only assemble investors to do deals, but also use their own funds to take position in those deals.
These merchant banks buy properties directly and act as the managing partner.
Where the merchant banks have been even more successful, has been in their ability to lure huge sums of capital into the market.
In continuation of the company s tradition as a pioneer in the finance industry, FSDH has become one of the first merchant banks to be awarded a licence in Nigeria since the repeal of Universal Banking by CBN in 2010, said FSDH.
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.
Burrill & Company is a life sciences merchant bank focused exclusively on companies involved in biotechnology, pharmaceuticals, diagnostics, devices, human healthcare and related medical technologies, nutraceuticals and wellness, agricultural biotechnology, and industrial biotechnology (biomaterials/bioprocesses) with over $850 million under management.
E & E is a merchant bank which provides bridge loan services to and invests in emerging growth companies.