Corporate Advisory vs Investment Banking: Services and Roles Explained
Introduction
Jade Corporate Advisors Private Limited, India ("Jade Corporate Advisors") is an independent corporate advisory firm dedicated solely to supporting the Project Owner with customized financial and strategic consulting services. Jade Corporate Advisors hereby affirms that it is not affiliated, directly or indirectly, with any investment banking firm, private equity firm, lending institution, or other capital market intermediaries.
The services offered by Jade Corporate Advisors under this engagement are exclusively tailored to the needs of the Project Owner on a case-by-case basis. The Advisor acts only as a consultant and advisor, providing unbiased and objective recommendations without any obligation or connection to third-party investment entities or lenders.
This independence ensures that Jade Corporate Advisors’ support remains focused solely on advancing the Project Owner’s interests, enhancing project readiness, and facilitating successful capital raising efforts in a transparent, compliant, and conflict-free manner.
Terms of Services
Scope of Services
Jade Corporate Advisors Private Limited (“Advisor”) shall provide advisory services tailored to the Project Owner's needs, including business plan review, project report preparation, feasibility studies, market and competition analysis, due diligence documentation management, financial modeling support, and strategic fundraising advisement. The Advisor’s role is consultative and non-executive.
Term and Termination
This Agreement shall commence on the Effective Date and continue for the agreed Term unless terminated earlier by either party giving [Notice Period] written notice. Termination may occur for cause or mutual consent. Accrued fees earned until the termination date remain payable.
Compensation and Expenses
Compensation terms shall be mutually agreed and may include retainer fees, success fees on capital raised, or project-based billing. Pre-approved out-of-pocket expenses incurred by the Advisor relating to the engagement will be reimbursed by the Project Owner in a timely manner.
Independent Advisor
The Advisor confirms it is an independent entity and is not affiliated with any investment company or lending institution. All services are rendered exclusively for the Project Owner’s benefit and based solely on its requested requirements.
Confidentiality
The Advisor shall maintain strict confidentiality of all confidential and proprietary information received and shall not disclose or use such information except as necessary to perform the services, except where compelled by law.
Intellectual Property
All materials, reports, and deliverables developed by the Advisor under this Agreement shall be the sole property of the Project Owner. The Advisor assigns any applicable intellectual property rights to the Project Owner.
Compliance with Laws
The Advisor agrees to comply with all applicable laws, rules, and regulations, including those relating to securities and anti-corruption, in performing services.
Limitation of Liability and Indemnification
The Advisor shall carry out services with due care and skill but shall not be liable for indirect or consequential damages. Each party agrees to indemnify the other against claims arising from gross negligence or willful misconduct.
Conflict of Interest
The Advisor shall disclose any potential conflicts of interest as soon as they become known and cooperate with the Project Owner to resolve them appropriately.
Reporting and Communication
The Advisor shall provide regular status reports regarding advisory activities and fundraising progress and maintain open communication via agreed channels.
Governing Law and Dispute Resolution
This Agreement shall be governed by the laws of [Jurisdiction]. Disputes shall be resolved through negotiation, then mediation, and finally binding arbitration if necessary.
Entire Agreement and Amendments
This document constitutes the entire Agreement between parties. Amendments or modifications must be in writing and signed by authorized representatives.
Applicable Fee Structure
The costs associated with services such as project report preparation, feasibility studies, market and competition analysis, financial data compilation, and other advisory tasks will depend on the specific requirements and complexity of the project as determined by the Project Owner.
Applicable charges shall be discussed and mutually agreed upon in advance based on the scope, depth, and deliverables of each business proposal or engagement. This ensures flexibility and alignment with the unique needs of the Project Owner while maintaining transparency for all services provided.
Pre-Funding Assessment as Initial Project Owner Expense
Pre-funding assessment is a crucial initial phase in the capital raising journey that involves detailed evaluation, documentation, and planning before investors commit funds. This phase invariably requires initial expenses borne by the Project Owner to lay a strong foundation and credibility for the fundraising effort. The Corporate Advisor’s engagement in pre-funding assessment ensures a disciplined, transparent, and structured approach to preparing the project for investment.
Purpose of Pre-Funding Assessment
- To comprehensively evaluate the financial, operational, legal, market, and management aspects of the project or business.
- To identify risks, opportunities, and investment readiness gaps early, allowing mitigation before approaching investors.
- To prepare an investor-ready project report, robust feasibility study, and complete due diligence package that meets market expectations.
Typical Activities Included
- Financial statement review, analysis of cash flow and capital requirements.
- Legal compliance checks for contracts, licenses, regulations, litigation risks.
- Market and competitive landscape research to validate assumptions and growth potential.
- Operational and management review to assess business capability and scalability.
- Compilation and organization of all relevant due diligence documents into a secure digital data room.
- Creation of detailed project and feasibility reports that clearly articulate the investment proposition and risks.
Indicative Time and Resources
Duration: 4-8 weeks, depending on project complexity and data availability.
Resources: Corporate advisor team (financial analysts, legal experts, market researchers), client project owner team providing data and stakeholder inputs.
Costs: Initial advisory fees, third-party consultants, document preparation, digital data room setup, and ongoing management.
Why Project Owner Bears Initial Expenses
- Pre-funding assessment is an investment in credibility and preparedness, essential to attract quality capital and favorable terms.
- It serves as baseline diligence that enables smoother, faster verification by prospective investors, reducing deal cycle times and renegotiation risks.
- Early identification of weaknesses lowers risk of failure or withdrawal during fundraising, protecting time and resources.
- Enables informed decision-making whether to proceed with funding or pivot project plans.
Role of Corporate Advisor
- Lead and coordinate comprehensive pre-funding due diligence and assessment.
- Advise Project Owner on documentation requirements and risk mitigation measures.
- Provide neutral, expert third-party validation enhancing investor confidence.
- Manage timelines, deliverables, and report preparation with secure document controls.
Project Owner Support Needed
- Providing complete, accurate financial, operational, legal, and market data.
- Timely engagement of internal subject matter experts and external consultants.
- Arranging access to systems and secured digital workspace for data sharing.
- Active participation in reviews, clarifications, and implementation of recommendations.
Corporate Advisor Services: Overview of Key Activities
- Business Plan Review and Enhancement: Review existing plans with advisory and client management, producing 20-40 page enhancements. Coordination with Project Owner for inputs.
- Project Report Preparation: Collaborate with experts to prepare 30-50 page reports; requires technical data from Project Owner.
- Feasibility Study: Conduct in-depth studies (40-60 pages), engaging market and financial experts, depending on data from Project Owner.
- Competition Analysis and Industry Trend Review: Produce market analysis (15-25 pages) leveraging research databases; client to supply competitor data.
- Due Diligence Documentation Management: Continuous oversight involving legal and IT resources; documents can number in hundreds; Project Owner manages access permissions.
- Cross-functional Collaboration Facilitation: Ongoing; requires Project Owner coordination between internal teams.
- Financial Modeling and Valuation: Develop models and summaries; advising Project Owner on assumptions needed.
- Capital Structure and Fundraising Strategy Advice: Deliver strategy memoranda with client inputs on capital needs.
- Legal and Compliance Coordination: Ongoing reviews with legal teams. Project Owner to facilitate documentation.
- Regulatory and Risk Assessment: Risk reports generated; Project Owner to supply filings for validation.
- Management Presentation Preparation: Create presentations of 15-25 slides; Project Owner reviews content.
- Fundraising Best Practices Training: Workshops requiring coordination of schedules by the Project Owner.
- Fundraising Milestone Monitoring: Monthly reporting with Project Owner updating statuses.
- Post-Investment Advisory: Continuous support; Project Owner to provide performance data.
- Confidentiality and Data Security: Continuous data protection with IT security platforms provided/supported by Project Owner.
Corporate Advisors and Investment Bankers: Distinct Entities and Services
Corporate Advisors and Investment Bankers are distinct entities offering fundamentally different services critical to a project owner’s capital raising journey. Jade Corporate Advisors Private Limited, as a Corporate Advisory firm, provides specialized consulting services including business plan review, project report preparation, feasibility studies, market competition analysis, and due diligence document management. Their role is predominantly advisory and non-executive, focusing on preparing the project owner for capital raising by improving project readiness, enhancing operational and financial documentation, and ensuring strategic alignment.
Investment Bankers, conversely, operate at the transactional and capital markets interface. When a project owner seeks premium outreach and capital acquisition services beyond advisory support, investment banking services are essential. These services, often offered through specialized technology-enabled investment banking firms, include:
- Identification and targeting of strategic investors for premium capital outreach campaigns.
- Development and management of professional investor pitch decks and marketing collateral.
- Setting up branded communication channels for confidential and professional investor outreach.
- Coordinating and scheduling investor meetings, followed by engagement management.
- Negotiating deal terms and supporting transaction closure processes.
- Advising on market pricing, deal structures, and valuation benchmarks.
- Ensuring compliance with securities regulations throughout the capital raise.
- Delivering investor feedback and intelligence to inform the client’s decision-making.
Should the project owner require these investment banking services, Jade Corporate Advisors can facilitate introductions to trusted investment banking technology platforms, which complement the advisory process with robust capital market expertise and transaction execution capabilities. This clear delineation ensures the project owner leverages expertise tailored to each stage of their capital raising objectives.