The term Merchant Banking has its origin in the trading methods of countries in the late eighteenth and early nineteenth century when trade-taking place was financed by bill of exchange drawn by merchanting houses



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18MB0408T - Unit II
These services include:

(i) Advice and assistance in negotiating terms and conditions of acquisitions and mergers;

(ii) Expert advice on valuation of the amount of purchase consideration and its nature;

(iii) Help in expediting legal documentation process and obtaining official approval;

(iv) Carry out management audits to identify areas of strength and weaknesses of a corporate unit;

(v) Assist in formulating guidelines and plans for future growth.



Canara Bank provides the following specialised services in relation to merger and amalgamation:

(i) Determining the strengths and weaknesses and their financial implications.

(ii) Deciding suitable form of organisation.

(iii) Assist the client company in preparation of the proposal draft, legal documentation.

(iv) Assistance in obtaining approval from various authorities.

(v) Co-ordinating the activities of solicitors, accountants, valuators & other professionals involved in merger and Amalgamation.

Punjab National Bank has a separate Merchant Banking Division that renders specialised services in the area of merger and amalgamation.

The services include:

(i) Assessing pros and cons of proposals for financial reconstruction, merger amalgamation.

(ii) Assistance in preparation and formulation of scheme of financial restructuring

(iii) Obtaining consent from shareholders, depositors, creditors, government and other authorities

(iv) Monitoring implementation of schemes of merger and amalgamation


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