Find all School-related info fast with the new School-Specific MBA Forum

It is currently 30 Sep 2014, 03:49

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Smaller IB Gaining Ground vs Traditional Big Banks

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
SVP
SVP
User avatar
Status: Burning mid-night oil....daily
Joined: 07 Nov 2008
Posts: 2400
Schools: Yale SOM 2011 Alum, Kellogg, Booth, Tuck
WE 1: IB - Restructuring & Distressed M&A
Followers: 73

Kudos [?]: 688 [0], given: 548

Reviews Badge
Smaller IB Gaining Ground vs Traditional Big Banks [#permalink] New post 13 Feb 2009, 11:19
1
This post was
BOOKMARKED
According to latest Fortune article called "Mini-Masters of the New Universe" (article not available online, yet), as the battle lines are drawn - smaller i-banks see their moment.

With Wall Street's biggest names in turmoil, the next tier of investment banks are licking their chops. Already those smaller firms have gained ground: Since 2000 about 20% of US M&A have been handled by independent i-banks, but last year that figure rose to 40%, according to Devin Ryan, equity analyst at Sandler O'Neill.

To be sure, M&A will be slow for the foreseeable future, but when the deals return they won't be the kinds of leverage fueled transactions that propelled the big banks - they're more likely to be plain old strategic M&A, which these smaller firms specialize in. Some, like New York - based Jefferies, offer the same range of capital-raising services as Goldman, Morgan et al., just on a smaller scale and without a proprietary trading desk that binged on toxic securities. Others, like Moelis & Co are M&A specialists looking to grow.


For example:

* Evercore Partners - $340 mil revenue in 2008. M&A specialist founded by ex-Blackstone bigwig and onetime Treasury official Roger Altman. Best known deals include - EDS sale to HP in 2008. Advised Wyeth on its $68 billion sale to Pfizer in 2009.

* Moelis - In 2007, superstar UBS banking head Ken Moelis picked up and left to start his own firm. Best known deals include - InBev's $61 billion acquisition of Anheuser-Busch, 2008's biggest deal.

* Lazard - $2.1 billion revenue in 2008. Elite advisor to mega LBO shops since the 70's. Run by Bruce Wasserstein. Best known deals include - Lehman's sale of Neuberger Berman. Currently advising Rohm & Haas sale to Dow.

* Thomas Weisel Partners - $300 million revenue in 2008. Former Montgomery Securities chief built the SF firm focused on starting IPOs. Best known deals include - Akami, Tivo, and Pets.com Poised to jump on any Web 2.0 startup IPOs

* Jefferies - $2.7 billion revenue in 2008. Onetime trading house is now a full service ibank that specializes in midsized companies. Best known deals include - Primary banker to natural gas giant Chesapeake. Also tops in many niches like shipping.
_________________

Get the best GMAT Prep Resources with GMAT Club Premium Membership

VP
VP
User avatar
Joined: 22 Oct 2006
Posts: 1443
Schools: Chicago Booth '11
Followers: 7

Kudos [?]: 150 [0], given: 12

Re: Smaller IB Gaining Ground vs Traditional Big Banks [#permalink] New post 13 Feb 2009, 13:36
ninkorn wrote:
* Evercore Partners - $340 mil revenue in 2008. M&A specialist founded by ex-Blackstone bigwig and onetime Treasury official Roger Altman. Best known deals include - EDS sale to HP in 2008. Advised Wyeth on its $68 billion sale to Pfizer in 2009.


Booth Alum :)
SVP
SVP
User avatar
Status: Burning mid-night oil....daily
Joined: 07 Nov 2008
Posts: 2400
Schools: Yale SOM 2011 Alum, Kellogg, Booth, Tuck
WE 1: IB - Restructuring & Distressed M&A
Followers: 73

Kudos [?]: 688 [0], given: 548

Reviews Badge
Re: Smaller IB Gaining Ground vs Traditional Big Banks [#permalink] New post 13 Feb 2009, 14:34
terp26 wrote:

Booth Alum :)


That would only work in your favor if they recruit at Booth...

Or do they? :?:
_________________

Get the best GMAT Prep Resources with GMAT Club Premium Membership

Director
Director
User avatar
Joined: 10 Jun 2006
Posts: 624
Followers: 4

Kudos [?]: 51 [0], given: 0

Re: Smaller IB Gaining Ground vs Traditional Big Banks [#permalink] New post 13 Feb 2009, 14:43
Power is moving to the boutiques...... the problem is that these boutiques do not take associates without prior IB experience (the way the bulge brackets historically have)
Re: Smaller IB Gaining Ground vs Traditional Big Banks   [#permalink] 13 Feb 2009, 14:43
    Similar topics Author Replies Last post
Similar
Topics:
Traditional gasoline-powered vehicles are becoming smaller shashankp27 4 22 Aug 2011, 13:46
1 Kellogg vs Cornell for IB iporcelain 1 18 Apr 2011, 21:30
Kellogg vs. Ross for IB Moss 8 06 Jul 2010, 10:43
IB vs. IM glettian 7 24 Jul 2009, 00:27
IBs exchange toxic derivatives for central bank capital trader1 0 16 May 2008, 03:36
Display posts from previous: Sort by

Smaller IB Gaining Ground vs Traditional Big Banks

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.