THE DEAL MAKER

DID YOU KNOW?

The word ‘bulge bracket’ comes from the way investment banks are listed on the ‘tombstone’ i.e the published notification after a completion of a financial transaction. The lead bank responsible for the deal is typically listed above the others, and will be listed on the cover of the prospectus. The font size of the name of this bank will be larger than that of other banks involved in the transaction, and the font itself may “bulge” out.

Boutiques keep pressure on investment banks

-During 2018, advised global M&A volumes reached $3.35tn, Boutique M&A financial advisors increased the pressure on the global investment banks after increasing their share of global M&A volume to 40.9%, equating to $1.37tn in total volume, the highest percentage share on record so far.

-However, it’s not just volumes where the boutiques are continuing to squeeze. Boutiques also accounted for $11.2bn of revenue with investment banks accounting for $16.3bn, keeping on par with the previous record year of 2016.

-Multi-billion-dollar transactions continue to fuel the boutiques with boutique advisors participating in 211 $1bn+ transactions, also an all-time record.

US M&A activity 2018

· US M&A volume came upto a volume of $1.74tn and a total of 7,791 deals.

· US outbound cross-border activity - $233.3bn, Deals 1,476 deals,

· An outbound merger means a cross-border merger where the resultant company is a foreign company.

· Important contributor – India second most targeted region by US companies, with $17.9bn via 63 deals in 2018, with Flipkart’s acquisition by Walmart Inc ($16.0bn) the main driver in 2018.

· Oil & Gas sector - $358.7bn & 770 deals, increase -17% YoY change. Mega deals - Andeavor Corp’s acquisition by Marathon Petroleum Corp ($35.8bn) and Energy Transfer Partners LP’s acquisition by Energy Transfer Equity LP ($57.5bn)

Authored By :

Sushil Krishnan

President '19