The warriors on the M&A advisory battleeldThe balance of factorsStrat - PDF document

The warriors on the M&A advisory battleeldThe balance of factorsStrategies and tacticsThe opposing forces over time Bulge-bracketsU.S. and foreign full-service investment banks with a large presence in the USA �(assets $500 billion)Small investment(assets lion)Bulge-brackets remain powerful, but weakened…Bulge-brackets' differentials in average deal value and number deals have fallen since 2007. Boutiques have sustained the jump in fees since 2009. Key CapacityCorporate relationshipsTalentBrand reputationDegree to which trends favor each playerGlobal reach, large teams of M&A professionals, and large Small balance sheet limits funding, low headcount reduces volumesAbility to leverage preexisting relationships from other business lines to cross sell What is their current focus?What more should they target?Focus on mid- and small-market and fee shareSafeguard advantages in the talent area, particularly in retention Build scale to take advantage of favorable trendsDiversify in ways that reduce concentration risk that won't damage "independent" brandImprove talent policy by incentives and building pool of Address reputation challenges by aggressively defending …while boutiques have gained prominence Share of fees by type of institution (top 25 by fees)Bulge-brackets 025%50%75%100% Boutiques Others 6%18%75%4%19%77%5%16%79%5%16%78%68%65%28%4% 4%3%27%26%28%69%70%5% 5%7%15%17%80% 0100200300400 Average deal value of banks in the top 50 league table rankings ($B) Bulge-brackets Boutiques Others 050100150 Average number of deals of banks in the top 50 league table rankingsBulge-brackets Boutiques Others The analysis is based on data from Thomson M&A league tables for U.S. targets from 2003 Drawing from the top 50 players in each year, 105 distinct institutions were classied into one of the three competitor proles — bulge-bracket, boutiques, and others. The asset sizes used in 8x 3x 2.3x 3.5x10x6x$144B7835$24B ContactTo learn moe about the Deloitte Center for Financial Services, its slutions, thought leadership, and events please visit: ww.deloitte.com/us/cfs SubscribeTo eceive email communications, please egister at:ww.deloitte.com/us/cfsEngage Follow us on witter at:@Deloitteinvs For more information and to download the full report, please visit www.deloitte.com/us/cfs/m&aadvisory . Deloitte Center for Financial ServicesThe Deloitte Center for inancial Services offers actionable insights to assist senio-level executives in the industry to make impactful business decisions.