Investment Banking Outlook

We all say the MS miss. What is everyone's outlook on IB in the coming years? Is it here to stay? Still the best spot for the best exits? Curious on your thoughts. 

5 Comments
 

M&A pipeline is very strong right now. Many companies are waiting to start the process once the war is over and there’s more market stability. Should the war end/cease and equity market bottom in Q4 22 then I expect 2023 to be a very good year. Also, I predict the proportion of sales to sponsors increasing against strategies due high dry powder and multiples (hopefully) compressing

 

This is the same gobbledygook being peddled by MD’s looking for an angle. The real outlook is smaller ticket deals, smaller fees, same amount of work under higher pressure to execute from sell-side. Strategics looking to sell garbage assets to shore up liquidity, maybe drives some sponsor backed deals but financing market may not support. Inflationary uncertainty makes it harder to get conviction around bottom line. Everyone should just chill out and have a beer.

 
Most Helpful

Agreed. Thought right now is "let's keep doing the work and be ready to be nimble when the market improves". The reality is that leverage was cheap during COVID and some companies will find themselves in a declining market with a very debt-heavy balance sheet and very few refinancing options, which will likely lead to divestures at attractive prices. Juniors will keep getting clapped working on deals that simply won't happen, which will translate into lower comp next bonus cycle. Product groups will be chilling over the next few months though

 

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