Investor Profile Essay
Investment banking has always been an essential component of successful business. In telecommunications or in any other business sector investment banking is successfully used to raise capital and promote positive company image. While investment banking is one of the pillars on which market-based economy rests, companies and investment banking facilities strive to establish close relationships for professional financial advice.
Since 2001, Verizon Wireless has closely cooperated with Guzman & Company – one of the leading investment banking service providers; and while the former sought to expand its presence on the New York Stock Exchange, the latter successfully fulfilled this mission, turning Verizon Wireless into one of the leading stock market players. Guzman & Company was founded in 1987 and has been well known for its close cooperation with large communication and technology providers, including AT&T and Verizon (Monica, 2003).
To better serve their clients’ trading requirements, the company has developed a new quality trading system, which provides Verizon Wireless with a whole set of connectivity solutions and makes them adjustable to the changeable stock market conditions (Guzman & Company, 2009). Since 2001, after Verizon began trading on the NYSE with the ticker symbol VZ (Verizon, 2008), Guzman & Co has become Verizon’s
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In this context, the natural question is what role investment banking intermediaries play in the development and expansion of businesses. Moreover, it is more than important to understand whether investment banking partners can readily embrace the benefits of their professional position to improve the quality of the company’s profits.
In reality, investment banking partners fulfill a whole set of functions and obligations, and whether they can enhance the quality of the company’s business performance depends on their knowledge of industry sector, as well as the level of professionalism and practical experience (Brealey & Myers, 1994). Guzman & Co provides Verizon with full information regarding potential investment targets. Given the knowledge of the telecommunications sector as well as the knowledge of investment markets, Guzman & Co offers Verizon Wireless almost unlimited opportunities for raising additional capital.
In the light of the current market conditions, Verizon Wireless actively cooperates with Guzman & Co when the need to consider time, tactics, and valuation of particular investment emerges; when other investment players are involved in the transaction, Guzman & Co works to balance the interests of all parties in ways that promote better profitability of Verizon Wireless. Beyond working with Verizon Wireless’ stocks, Guzman & Co provides general financial advice concerning the funding structure of the company, as well as the need to issue additional stocks.
The success of Initial Public Offering also largely depends on the choice of investment banking partner (Brealey & Myers, 1994). As a result, where Verizon Wireless seeks to expand its profits and establish a new quality of business relationships with other market players and investors, Guzman & Co becomes the central element of this investment expansion, giving Verizon another chance to effectively use its assets and balance its financial needs with the limitedness of its tangible and intangible resources.
Conclusion Since 2001, Guzman & Co has been the major investment banking partner of Verizon Wireless. Whether in the need to issue stocks, to obtain professional financial advice, or to raise additional capital, Verizon could readily embrace the benefits of its close cooperation with Guzman & Co, with the confidence that it could balance its capital needs with the limitedness of its financial and non-financial resources. References Brealey, M. & Myers, S. (1994). Principles of corporate finance, 5th ed.
McGraw-Hill. Guzman & Company. (2009). Guzman & Company: member of the New York Stock Exchange. Retrieved March 20, 2009 from http://www. guzman. com/ Monica, P. (2003). Get ready for a wireless war. CNN Money. Retrieved March 20, 2009 from http://money. cnn. com/2003/09/04/technology/techinvestor/lamonica/index. htm? cnn=yes Verizon. (2008). Stock information: Overview. Verizon. Retrieved March 20, 2009 from http://investor. verizon. com/stockinfo/overview. aspx