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Corporate finance is an often interchangeable term that defines the raising of funds and the managing of money by businesses in order to grow and expand. In a smaller business corporate finance might involve the owner borrowing money from a bank or a relative for a capital equipment purchase. In a larger company it might involve the finance director entering into a complex securitization arrangement to raise further funds for research and development.

Broadly, the term corporate finance covers a wide range of issues, including:

•  Acquisitions and mergers

•  Business disposals

•  Management buyouts

•  Fund raising

•  Share issues and similar transactions

There are specialized corporate finance firms that help their clients raise money to carry out such transactions as outlined above. The demand for equity continues to grow as business angels and seed capital funds seek opportunities to invest in the incubation of new and existing businesses. Corporate Financiers and Venture Capitalists are growing in numbers in Australia , like they have already done in the United States .

Generally corporate finance professionals 'lead' the transaction. This means that they execute the deal and oversee the role played by other parties involved in the transaction including solicitors, consultants and due diligence experts. Actually bringing the deal to fruition is a mixture of analyzing the financial status of the company and commercial cut and thrust (defending a client from a hostile bid, attacking a potential target company or negotiating with an investment bank and other parties over a valuation).