How has your dealflow been?
As I prepare for my summer analyst position this summer, I'm curious as to what kind of dealflow all of you real bankers have been experiencing. I'm sure this information will be useful to everyone here, so if you guys could answer these questions, that would be great.
-What area of banking are you in? (BB/MM/Boutique, geographical location, industry/group)
-How much dealflow have you been seeing in the past couple months, and what kind of deals (M&A, equity, debt, convertible debt, etc)?
-What kind of trends do you see, and what do you see happening down the road?
Thanks a lot, I'm just really interested in getting all of your insights.
Don't have too much time right now, but as far as dealflow goes: you're not seeing anything out of LevFin or Financial Sponsors. The high yield debt markets are basically shut off. Those groups are going home at 4 or 5 oclock at night. There hasn't been a single LBO go through the pipeline this year, not one. Although the financial sponsor led M&A deals aren't happening, there has been a shift and refocus towards the strategic acquisitions.
Needless to say, all the scheduled IPOs have basically been put back on the shelf for the time being. The only truly active market is the convert market. Hope this helps - i'm sure some of the other guys can expand further.
BTW - all for the US mkts
Why do you think I have so much free time to post on message boards? :)
Everything has been hit, but anything LevFin or Financial Sponsors-related is absolute death right now.
Some smaller M&A deals are still getting done, but the recent stock market declines have even made those difficult to do as lots of companies don't want to sell at what they perceive to be depressed valuations.
Even companies that want to sell are pushing back on "going out to market." I think this is a key point, as lots of people say, "Well, strategic M&A will come back!"
Well, so far it hasn't, partially because companies don't want to sell at depressed valuations.
Some LBOs have actually happened but they are very small and off peoples' radar. Nothing too big has gotten done.
In summary, go to restructuring if you can, I'm sure they're on fire. :)
What do we do as an SA? Will we get no work this summer, or will things begin to get better?
Also, why would banks bring in interns if there was no work to do? Hard to stand out as an SA if there is no action going on.
There's plenty of stuff to be done. Even if there's not any live deals going on, you'll be working on pitches and helping out wherever's needed. If there's down time, be sure to check out old pitches and run through various models to teach yourself whatever you can. Not having any live deals going on should be no excuse for you not to gain a ton of experience this summer. You'll get out of it whatever you're willing to put in.
Make no mistake - banks are not bringing you on board this summer to contribute meaningfully. You're being brought on board as a SA so they don't have to hire you next year. Do you really think you will contibute enough productive work to earn your SA salary, housing stipend and justify the training expenses? Not even close. Almost every SA makes the same mistake: thinking you're going to come in and contribute meaningfully to deals and offer valuable insight. Seriously, it won't happen so don't be dissapointed. Learn as much as you can and position yourself in the best way possible to receive that full-time offer.
But be assured, the bank that hired you will lose money on you this year.
-What area of banking are you in? (BB/MM/Boutique, geographical location, industry/group)
MM -- Non-New York -- M&A
-How much dealflow have you been seeing in the past couple months, and what kind of deals (M&A, equity, debt, convertible debt, etc)?
Deals are still coming in and getting done. My first deal will close in the next couple of weeks and I just won a pitch for another one. The size of our deals seem to have decreased a bit, but sheer numbers have not decreased. We may be the exception to the rule though.
-What kind of trends do you see, and what do you see happening down the road?
M&A continues to be extremely active in the lower-middle to mid-market. I ran an analysis a month ago for deals under and over $1 billion. Around August 07 there was a huge plummet in terms of the number of deals over $1 billion, but the number of deals under $1 billion only took a minor hit. So while it is certainly true that financing has dried up for the big deals, there are a couple of lenders that have stepped up in the middle market.
Predictions? I think we'll continue to see only smaller deals going through in 2008 and starting to pick up in 2009. Of course, if the market really tanks all bets are off. I don't think anyone can promise anything at this point.
I understand an SA comes on in a support role (helping out with menial tasks), but how do kids mess up and not get a ft offer if they arent doing hard work, other than if they were just assholes and nobody liked them? I don't get how you can blow the opportunity based off not being able to do the work assigned to you.
Great question - and the answer is almost always attitude. They're not willing to do those menial tasks or don't get along with most of the group. Some of these kids have never been in a professional working environment before and simply don't know how to act in an office setting. Some can't handle being called in at inconvenient hours, and many start doing the biggest no-no: pushing back.
Just keep the right attitude and you'll be fine. Smile often and keep everything in perspective - your end goal is to get that offer (whether or not you decide banking is for you).
I was going to put this post as its on thread, but since a similar one has been started, I decided to ask the question here. For those of you at MMs in industry groups (specifically tech, but I would love to hear others as well), how is the deal flow in your area?
Thanks for that answer. Can you list some types of "menial" tasks an intern might have to do? Everyone always talks about them, but they're never spoken of. I am curious as to what constitutes as "grunt work"
Here's a few: spreading and/or updating comps (transaction and trading comps), updating company profiles, pulling together industry & company research, making pitchbooks
Quia repellendus sit voluptatum quam ex eos. Dolore sapiente ipsa quae voluptatum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...