Corporate finance is the division of a company that deals with financial and investment decisions. Corporate Finance’s primary concern is maximizing shareholder value through long-term financial planning and the implementation of various strategies. These activities range from capital investment decisions to investment banking.
Corporate Finance activities include capital investments, capital financing, and dividends & return of capital.
Capital Investments: decide what projects and/or acquisitions to invest in and earning the highest possible risk-adjusted return.
Capital Financing: Determines how to fund capital investments and optimize the firm’s capital structure.
Dividends and Returns of Capital: deals with deciding how and when to return capital to investors.
A company’s capital structure is crucial to maximizing the value of the business. Its structure can be a combination of long-term and short-term debt or common and preferred equity.
With guidance, you will be better suited to make decisions that include whether to pursue a proposed investment, whether or not to pay for the investment with equity, debt, or a mix of both. With the help of an attorney, you will have assistance in all types of entities including limited liability companies, corporations, etc. The firm may prepare agreements, and assist clients in need of securing debt or equity financing.