EVR & PWP on McGill

Sometimes it’s just relationship driven. Like the CFO / CEO had great relationships with both banks. Both banks have been doing great “free” work for them for a while in terms of research, market analysis, strategic advisory, shown opportunities, kind of the whole gamut of what an investment bank does for a company. Now that there is an actual opportunity to physically pay them in cash, the CEO or whomever makes sure that both of the people get paid for the help they gave them. Even if only 1 bank is really needed do make the CIM and do the blocking and tackling of execution and such. 

There could be other reasons, just whetting the palette and helping people who may not know, to know or at least start developing an understanding and sense

While I’m at it, sometimes a sell side client has two different niches or something so two different banks can be needed with expertise in that sector. Sometimes one bank is doing the deal alone for a while and for whatever reason it’s not closing because of some rut in the diligence or the buyer doesn’t feel so comfy. In that case, I have seen where bringing in a second advisor who may be seen as “smarter” or “more trusted” by a certain buyer or group of buyers be enough to get the deal over the edge. 

For example I was at Moelis working with the insurance P&C team. Banker had a long career at CS and knew the ceo of Target Company very well. Had been meeting with board regularly on strategic updates and plan. Eventually board decided to run a process and hired GS. GS was good but maybe the individual banker at Moelis had some extra expertise or a closer relationship with the CEO. Nevertheless, GS ran the process alone and for whatever reasons deal couldn’t get announced (sale to Bigger Competitor). I understand that eventually they brought Moelis / that senior insurance banker under the hood and gave him an official role. Whatever he did (as an analyst, I wasn’t so included in everything behind the scenes on that deal), the deal was announced shortly afterwards. My sense is that the Moelis banker was able to convince the sell side CEO to retire and go golf more. I would guess maybe the hold up in the deal may have been the sell side CEO not wanting to announce because he would have to retire or having some concerns whether the deal was in the best interests of his company and the employees and shareholders and such. Having his close “friend” in on the deal and after seeing all the details telling him “yea, I think you should take the golden parachute and announce the deal and retire and let you company become a division of a larger competitor” may have been enough to get it over the finish line  could be the CEO really trusted that banker’s expertise and experience in seeing how deals like this one play out in the long term  plus given how GS was leading this deal and it was about $1-2bn back in 2017, I could imagine it may not have been getting the most senior attention at GS but rather maybe a younger MD running it  the Moelis banker was like 60/70 years old it seemed so having someone with that level of experience could have made a difference 

Just some thoughts from what I saw and currently have in my recollection from the situation . I hope this helps.