Why can't investment banks advise their own transactions?
Something I'm genuinely interested in understanding. When an investment bank is doing an acquisition, why do they need another investment bank to advise them on the transaction? For example, you commonly see investment banks acquiring small private wealth management arms/companies or tech businesses and there is a separate investment bank advising the initiative. Why do these investment banks need the help of other banks? Why can't they advise themselves?
They do, see SunTrust and BB&T. But often times it's not cost effective to staff the ibd team on it when they might be working on a more profitable deal, and it also avoids potential conflicts of interest.
bump
wanted to ask in relation to Goldman AM's acquisition of Melita and Deutsche Bank's acquisition of Numis earlier this year (the latter was done by the bank themselves)
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