https://www.bloomberg.com/news/articles/2019-01-0…
"The 16-person boutique run by ex-Goldman Sachs Group Inc. rainmaker Gordon Dyal started 2019 with a bang, advising on the biggest-ever pharma deal alongside much larger Wall Street rivals. Joining lead adviser Morgan Stanley and Evercore Inc., New York-based Dyal Co. helped Bristol-Myers Squibb Co. prepare its $74 billion acquisition of Celgene Corp. Those banks are set to split as much as $85 million in fees, according to estimates from Freeman Consulting Services, a division of Freeman & Co., the boutique advisory firm. Celgene’s lead adviser, JPMorgan Chase & Co., as well as Citigroup Inc. could get as much as $110 million."
Thoughts?
I saw this. Kinda nuts that they're getting in on this. I remember seeing Dyal mentioned with like Liontree as one of those obscure yet powerhouse mini-boutiques. I guess we know why now...
Do you think GS being shut out has something to do with their recent legal troubles?
Doubt it......Goldman's not as strong as MS and JPM in the Life Sciences. Their hotshot guys (Jack Levy and Andrew Rymer) are at Centerview now. It's actually more surprising that CVP isn't on this deal but I guess they're pretty committed to Pfizer....
This kind of bilateral transactions are much more senior heavy and senior intense than traditional m&a deals. The real “junior” work is actually pretty limited (i.e. fairness opinion, with projections coming from the companies, some investor relation materials), unless you work with / for some mentally retarded MDs who want to prove they are better than the other advisors at the table and want to produce endless analysis which are not really helpful for a strategic decision that CEOs have already taken and digested.
Therefore, I am not surprised when I see some new name advising on this kind of deals. You really need a person that is successful at keeping people at the table, managing parties expectations, keeping the pace, pushing the deal forward, etc. more than an army crunching pages (and for that they had two BB already, who have probably released the FO). It would be helpful to have a feedback from a analyst / associate on the deal to understand what the split of work was. I wouldn’t be surprise if the banker at this new boutique was literally chairing all the calls with the BB doing the pages.
Can anyone elaborate more on how stud MD's are better than regular MD's at "keeping people at the table, managing parties expectations, keeping the pace, pushing the deal forward"? I really don't understand what makes guys like Taubman, Dyal, etc. so much better "dealmakers" than other guys. The things @cruel3a" mentioned seem like logical things for senior bankers to do....
I did not want to say that Dyal is better than other MDs at BB / EB banks. What I am saying is that CEOs like to be advised by people they like and that they have worked in the past.
On top of that, it is not always true that the head of Healthcare at Bank X, Y or Z can manage the CEOs of these specific parties (maybe he never worked with them in the past, maybe he is conflicted, maybe they simply don't like each other from previous transactions, etc.).
Finally, as in any profession, there are people that are better than others at their job or at a specific situation. Being Head of Healthcare at JPM (for instance) doesn't always make you the best possible MD to hire for a specific situation.
But the FT said it better than me yesterday:
https://www.ft.com/content/4d59b1ac-1140-11e9-a581-4ff78404524e
I still find it strange they got the deal. I get what you're saying but their last couple (at least from what I could find) where the $8.7B Novartis-Avexis deal and the $2.25B LyondelBassell-Schulman deal. Something of this size out of the blue seems strange and whilst I understand the seniority point, I am surprised Centerview didn't get it. Dyal could/should have been on the $8B Eli Lilly-Loxo Oncology deal to build more expertise in this sector.
Maybe Centerview was conflicted? Did he work for any of the party when he was at GS?
Not the biggest pharma deal in history..
No but it makes it in the top 10 at 7th place.
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