- "Andrey, I don't understand, can your firm become a bank so easily?" David's ability is big enough. I said

- "Hahaha...... Linna, I see that you really don't have a concept of what investment banking is. At first, I said that Sergey's investment consulting company and we are peers, and you don't seem to agree with it.

In your eyes, the business of an accounting firm is: auditing, tax declaration, company registration, stock management, notarization, litigation agent, executor, bankruptcy liquidator or something? ”

- "Isn't it?" I asked

- "What do you say?" These businesses are indeed the practice of accounting firms. My father conservatively thought that was what our firm should do.

In fact, today's accounting firms have developed to provide comprehensive economic management and technical management consulting services, and the business content has gone far beyond the scope of accounting.

Accounting intermediaries are vividly likened to "economic police", which are the verifiers of the financial status and economic results of enterprises. It is necessary to conduct substantive testing and appraisal of relevant information that reflects the financial status and operating results of enterprises.

On the one hand, it inspects and verifies the quality and quantity of the assets and liabilities of the enterprise, so as to determine the real scale, strength and credit status of the enterprise; On the other hand, the legitimacy and authenticity of the income and expenses of the enterprise are confirmed, so as to approve the profits of the enterprise and determine the tax payable.

In particular, when a listed company issues shares, the securities management department determines whether to approve its issuance and listing based on the financial indicators such as assets, profits, earnings per share, and net assets per share verified by certified public accountants.

After the listing operation, the investor decides the increase or decrease of the investment amount and the distribution of profits based on the business results of the enterprise verified by the certified public accountant.

Since the audit and verification of the financial status and business results of the enterprise by the certified public accountant has legal effect, the accounting firm is also called the "economic court".

- "So powerful! I exclaimed

Andrei looked at me, smiled and said:

- "Linna, the value of a senior accounting firm is very high. It can even be used as a guide for capital flows.

In the capital market, accounting firms guide shareholders to invest their capital by disclosing information such as the asset restructuring plan of the IPO company, the use of the raised funds, and the expected returns.

After the stock is listed and circulated, the flow of capital is guided by the announcement of the operating results of the listed company.

In the field of direct investment, accounting firms regulate and guide investment activities such as joint ventures, equity participation, holdings, and purchases between enterprises through asset appraisal, value identification, and financial auditing.

In the area of indirect investments, banks and other creditors make decisions through accounting firms' assessment of the borrower's creditworthiness and the assessment of the value of the collateral assets.

The capital is directed to advantageous industries, so that the owners of capital can avoid risks to the greatest extent, and realize the unity of capital profitability and safety.

Senior accounting firms can provide IPO financing for listed companies.

As a result, many accounting firms have joined forces to form large partnerships. Some companies have become international organizations with branches all over the world! ”

- "In this way, it is only natural for your firm to develop into an investment bank!" Then why do you question David's approach? I asked.

- "Linna, you now know that the development direction of accounting firms in various countries around the world is the business of investment banking, but our firm is not developing smoothly! This has a lot to do with the decisions of the firm's management.

My father's firm was founded more than 20 years ago, and there has been no change in the management of the firm to this day. Their butler service philosophy is long gone.

A few years ago, David proposed to my father that he should expand the scope of the firm's business and participate in the investment and financing activities of the company. David asked my dad to give a presentation to the board of directors to share some of his views on the direction of our firm. That was before I went to Moscow to study, and I attended the conference at that time.

Although David's financial knowledge is convincing, he is not a member of the firm, and it is entirely for my father's face to let him sit on the board of directors.

Finally, the Board of Directors unanimously agreed that the conditions for the implementation of David's recommendations were not ripe on the grounds that they did not have the experience and expertise in investment and financing. My father and they were on the same page.

At that time, I even thought that David was inflated by his promotion, and he actually came to our office to point fingers......

Lina, I think David may have despaired of us because of this. After that, he didn't seem to care so much about the fate of the firm.

Until the firm was in crisis, David suggested selling it to the Jews. Hehe...... Who knows? This may not be an option, but now I seem to be beginning to understand David a little. ”

- "Do you understand David? Then why are you still questioning David? ”

- "When I say understand David, I understand his philosophy of the firm. What I'm questioning is David's approach. Andrei's brows were furrowed, his expression was quite complicated, and he paused and began to speak:

- "Linna, let me tell you, my sister-in-law's uncle is the same Jew who wanted to buy our firm a few years ago. ”

- "Well, I remember this. I replied.

- "At David's wedding, he told me that he had always been interested in our firm...... At the time, I really didn't bother to talk to him. What I didn't expect was that in the plan for the reorganization of David's firm, there was a stake in this Jew. ”

- "I don't understand Andre, didn't David say that he was going to upgrade your firm to an investment bank? According to your explanation, there is not much difference between a firm and an investment bank, so how can there be outsiders participating in the shares? ”

- "Haha...... Lina, that's a good question! That's exactly what I didn't expect!

David is truly worthy of being an investment executive in the world's top banks, and his vision and operation are indeed very smart.

I really admired his ability to integrate resources.

According to his plan, our firm could become a heavyweight investment bank in one leap, which is really something I could never have dreamed of. It's no wonder my father was tempted by this. ”