The boutiques always advertise that they're independent as they only offer strategic or financial advice instead of the full-suite of financial services like the bulge brackets.
But what does this actually mean? What conflicts of interest are they avoiding?
Thanks!
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Lending can create a conflict of interest
For example you can assume a bank like JPM could advise to use debt in a deal which they would then underwrite so more money for them
Here is a buy-side example: The M&A advice isn’t impartial if I can instantly earn a 3 point OID by issuing a term loan to support the acquisition (or any such product that has meaningful economics and changes our recommendation).
Wouldn't this be obvious to the client? They would know alternatives and could push the bank to show more options and specifics within other options. This sounds more like a problem of the deal itself. If the target is too big then there will be some financing requirement regardless.
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