Guggenheim Partners - $130 billion Verizon Vodafone deal.
What do people think about Guggenheim now that they completed the $130 billion Verizon Vodafone deal.
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Googleheim?
very curious as well
Speaking to friends who work there - they're starting to get some nice deal flow. From what I understand though, the downside to all this is that these guys are being worked to the bone but don't have the exit opps to make up for it.
What exit opps have people gotten in the past?
I've got a few older friend in the NY office. been told the hours do suck hard but they are compensated way over street for it (1st year analyst bonus was $70k).
deal flow has been picking up as well. from an M&A standpoint this summer he said they did- Saks/Hudson for $2.9B, Tribune for $2.7B, Hanes/Maidenform for $600m and some other financings. they also plan to double their analyst class going forward and opened up an Atlanta office with RX now in SF and NY. seems to be expanding quickly.
i'd say they are definitely not a middle market firm since they do billion $+ engagements and megasized deals like Verizon. they are definitely reaching the elite boutique status but may take another blockbuster deal like Verizon or so to get them there.
I have also heard that exit opps aren't that good.
130 billion dollar deal near close for Verizon (Originally Posted: 08/29/2013)
http://www.bloomberg.com/news/2013-08-29/verizon-said-near-130-billion-…
Deal could happen as soon as the 2nd. The amount of capital Vodafone would exit with is incredible.
Also, some nice IB fees for this.
Who's on the mandate and what would the fees be for this deal.
Looks like a lot of peoples' Labor Day Weekends are getting ruined.
As a VOD share owner, I'm LOVING this
Reuters reports that Verizon Wireless had FCF of $28.6 billion in 2012. Since Verizon is buying the 45% stake that means they are basically buying $12.85 billion of FCF a year (I dont know what the growth possibilities are) for 130 billion. To me that seems fairly priced at about 10 times FCF. Any telecom experts here that have an opinion regarding the 130 billion valuation?
Now please correct me if I am wrong. Because verizon has ridiculous amounts of D&A isnt a valuation using a multiple of FCF kind of not as relevant as looking at EBIT multiples or other ways of looking at a company including D&A?
"Bank of America Merrill Lynch and Morgan Stanley are among those working on providing the vast debt package to finance the cash portion of the deal for Verizon. Goldman Sachs and UBS are advising Vodafone" Source: FT
the amount of fees the Ibanks involved in this deal are going to bank will be amazing ;)
Interestingly enough, I have a tiny bit of experience with telecom valuation and the figure I've seen was 10x EBITDA-Capex, not FCF.
Good for vod retarded for vz
Really interested if you could go into more detail.
Reuters: "Verizon has tapped JPMorgan Chase & Co, Morgan Stanley, Barclays, and Bank of America Merrill Lynch to help raise the financing through a mix of bonds and bank loans, the sources said.
It plans to pay for another half of the purchase with its own stock.
The four banks are also advising Verizon, along with former Morgan Stanley banker Paul Taubman and Guggenheim Partners, the sources said."
Heres the breakdown:
Guggenheim Securities & ex-MS Taubman advising Verizon (rumor is they've been on it for over a year or more) JPM, MS, Barclays, BAML on financing, and also co-advisors for Verizon (rumor is they came a bit later for financing reasons and now co-advising the closing) GS and UBS advising Vodafone
Ideally you just sell it to AT&T, they are also ex growth and very happy to destroy value through European acquisitions
Holy shit is Taubman going to get paid
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