IBI Corporate Finance has set up a new unit to cater for mergers and acquisitions among small companies.

The IBI private company unit will provide corporate finance services for private companies.

Increasing numbers of private company transactions persuaded the bank of the need for the unit.

It will focus on providing advice on disposals, mergers, acquisitions, financial and strategic advice, management buy-outs and buy-ins as well as equity raising and debt finance.

Mr Richard Keatinge, managing director of IBI Corporate Finance, said there has been an erroneous impression that IBI's main interest was in the public company area. "The creation of the private company unit is designed to redress this," he said.

He added that a medium-sized firm has different needs and objectives to a listed company and the new unit will provide a different focus.