Mediobanca acquires Arma Partners

Having worked at a competitor to Arma, it was my impression they killed it for EU TMT and Enterprise Software deals in the MM space, so I'm surprised to see this.I imagine they pursued this strategic agreement because deal flow is drying up significantly.

 

Not entirely sure its for drying deal flow, as they announced couple weeks ago record revenue and deal volume for FY23 (FYE-March). Also know some people working at the firm and according to them dealflow hasn't slowed down so far.

Interested in seeing how this plays for them now as part of Mediobanca.

 

Hmm maybe it’s more of a Mediobanca-driven transaction then, in that they may have been looking for a boutique to acquire for some time

 

Clearly you are some junior to mid employee at arma who is not privy to the internal details. If they were doing as well as you say they wouldn't have sold themselves and that too to a medicore bank 

 

Brother I am a former FIG analyst from a Citi  London who spent years covering European banks, in particular Italian and Spanish. I know these institutions inside out. Mediobanc is no RBC or TD or UBS. It is literally a Mediocrebanca 

 

Maybe the partners just want liquidity for their shares? Why do companies sell themselves to other companies, is it because they're going bust? The "medicore bank" you mention probably just gave a better deal than the uber-prestigious banks you have in mind, lol.

 

How do you think that this acquisition will impact Arma and Mediobanca respectively? Indeed, Mediobanca`s acquisition of Messier & Associes (definitely a leading boutique in Paris) seems to have worked out quite well. Mediobanca also seems on the rise and is regularly in the top 20 of the EMEA league tables. 

 

The reason Arma is doing this is to accelerate its growth outside of EMEA and expand into other tech verticals.  In the release and during MB's CMD, it was clear that the idea is for Arma to remain independent (like Messier) but will benefit from MB's platform (= capital) to grow.  Arma has reported record revenues for the last 5 years and any tech sponsor will tell you that they are one of the best advisory firms in Europe. 

it's actually quite a smart deal for them.  Just look at the amount of failed integrations that has happened in the investment banking world (i.e. Lehman (Europe) / Nomura, GCA/HL, Mooreland / Stifel etc.)

 
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My understanding from people working there is that it's been a mess given the difference in how they do coverage (country/sector), which resulted in a large reorg of the teams that p*ssed people off.  They have just made a large redundancy round as well. All directors have been told to originate every year otherwise they will get fired, hence they are running with a lot of low-quality assets in the market (HL is a volume shop).  Most of their issues are within their European business, albeit rumors their senior US tech team is looking to leave post earn-out. 

 

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