Would like some of your perspectives on pursuing a career in the industrials IB group (assume that you are a 1st year MBA looking to choose a group as a career)...
Would like your thoughts on cyclicality, stability of deal flow, M&A activity, sponsor related activity etc. I've noticed that Industrial groups are usually very large (2nd only to the FIG group...) - is that usually a good thing or a bad thing from a career perspective?
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It's difficult to generalize the industrials group as a whole because the group itself is usually very large and split into several verticals (ex. aerospace & defence, building products, automotive, packaging, steel, transportation, waste, diversified and so on etc.), with each vertical having its own unique characteristics. But I'll give it a shot nevertheless:
Can't comment on cyclicality or stability of the industrials sector as a career - if you're really concerned about job stability, not sure if you should be aiming a career in IB in the first place. Group-wise, I'd say FIG, Healthcare and DCM in general would be most "stable" in terms of dealflow in a recessionary period.
Hope this helps.
you are the goat
7 years late but does anyone here know why there is less ECM activity in the sector?
I would assume since there is more private equity activity that would mean more leverage is used. Which means DCM is a more popular choice>ECM
Thanks @Highly Leveraged." This might be a bit much to ask but would you be able to elaborate more on the characteristics of the different subsectors within the industrials group?
Also would like input from anyone regarding the stability of Industrials IB as a sector. Thanks!
bump
I'm not in industrials but it seems like Highly Leveraged hit all the main points, particularly about many of the deals being good LBO targets.
Question: Is Industrials in general a cyclical sector in terms of IB dealflow? Or does industrial companies have relatively stable dealflow (compared to other sectors?)
Again, not actually in Industrials but from what I know it is a relatively stable sector. Fewer companies with unproven technologies (compared to say, biopharm) means the industry as a whole is pretty stable, plus many Industrials companies are good fits with each other for consolidation in times of economic distress. Sector as a whole is generally less dependent on equity raises so when the markets are down it's not as big of an issue.
Industrials Coverage Group (Originally Posted: 03/26/2009)
What are your opinions on getting in Industrials right now? It sounds interesting, but is there activity there right now? Are their exit opportunites outside of the industry?
Thanks,
Hopeful
hit hard...will be slow to come back.
bump
Things may be different in the MM, but larger M&A transactions in the Industrials space were largely driven by financial sponsor activity. Those have dried up for now, but after a while we will start seeing an uptick in deals related to sponsors cutting portfolio companies loose.
Guessing there is a lot of restructuring going on in this space.
Industrials banking and off-shoring (Originally Posted: 03/16/2007)
I'm thinking of shooting for the industrials group at the bank I will be working at stating full-time in July. One thing that concerns me, though, is the off-shoring of industrials (like autos, manufacturing, etc.), largely to Asia. Obviously the Asian office of the bank could benefit from this, but it seems like the US office wouldn't see much deal work then.
I'm thinking long-term as I actually liked banking during my internship this past summer and may very well want to stay in the industry long-term and be a career banker. So, I don't want to join an industry group that will be dead in the US in 10 years.
Anyone have any insights to offer? Much appreciated.
I seriously doubt Industrials will be dead in ten years. American manufacturing is still very much alive and well; they're just not making gears and steering wheels anymore. They make aircraft and crazy infrared sensors and liquid-cooled CCD cameras and tiny solar panels and gyrostabilized long-range missile tracking systems. Whenever you need serious precision and skill in manufacturing, that manufacturing will often take place in Europe and the U.S. Additionally, most deals touch New York even if Asian teams have a hand in it as well.
Industrials is also a lot more than manufacturing in many banks. It also includes engineering, development, and services such as transportation and logistics. The recently deceased and highly publicized Delta/USAir deal went through the Industrials segments of the respective banks. So did the spinoffs of Travelport (a travel services company) and Realogy (a real estate business).
is right. Industrials at most banks include steel, plastics, mining as well. It's so diverse that even if one sector within industrials is slow/not exciting, you can always be involved in something more that you like. I think it's one of the best coverage groups to be in the number of different companies you'll see. However, if you're at JPM or GS, then TMT is defintely better since it's very broad and more 'sexy'.
Yep. Agree with Scott. Breadth of coverage group is nice.
Industrials - Research focus (Originally Posted: 10/12/2006)
I have an interview with the Industrials group of a BB coming up. I don't really follow the industry. Off the top of your heads, what are some of the major happenings in the industry that I should be aware of and focus my research on? I would appreciate the help.
Take a look at Ford and GM lately, for one.
If it's CS, they just worked on the big Aramark LBO. If it's GS, I know they cover GM for sure.
Bear in mind that many automotives are covered out of Chicago offices. If you're interviewing in New York, they probably don't want to hear about GM.
Instead, check out GE -- huge financial segment throwing off valuation. Defense and aerospace has been interesting; do a newsrun on Boeing, Airbus, Lockheed Martin, Raytheon. Recent transactions in the defense space include Boeing/Aviall, General Dynamics/Anteon. Also check out recent Rockwell and Siemens activity. If they have a global focus, look at Snecma. For DI transactions, check out Rexnord/Apollo and Flender/Siemens.
Other firms of interest right now would be Regal-Beloit (post-GE HVAC acquisition), Danaher, R.R. Donnelly, Millipore, ITT. These are just a handful, obviously. The space is HUGE.
And its all good advice. But just for the record, GS NY does cover GM.
Aramark LBO was run out of CS in Chicago.
The advice has been really helpful so far. Just FYI, I am interviewing with the Chicago office. What about Metals & Mining (besides Mittal-Arcelor which I suppose is old by now) etc. Please keep it coming. The more the better.
My general point was to tailor your questions and research towards the specific deals the bank you are interviewing with has done.
For metals/mining, check out news about Inco Ltd. over the last few months. Been in play for a while, with several bidders.
Industrials - Dealflow/prestige? (Originally Posted: 07/01/2008)
How do the BBs rank in this space in terms of dealflow/prestige? Any insight would be appreciated, thanks.
i can't really speak to rank, but i'm in this group and obviously at one of the banks i mention so i'm staying out of the ranking argument....
I searched Factset for total deals announced by value and included the Industrials component SIC codes.... here is what I got..... (dont shoot the messenger, weird results on some of those placings, someone let me know if they find a different result)
1 MS 2 UBS 3 Lehman 4 Lazard 5 Credit Suisse 6 JPM 7 GS 8 China International Capital Corp 9 Citi 10 DB 11 ML 12 Rothschilds . . . . .
under the impression that GS had the best group?
or so i heard on this board previously (take it for what it's worth -- probably not much)
X35109, without revealing the bank that you work at, I'm curious about what impressions you get regarding the strong players in this space
think about it like this...
most industial deals are for huge clients (think airlines, defense, transportation, basic materials, chemicals, and companies like GE, 3M, and so on...)
sometimes those companies do small debt offerings or whatever, but often times those companies are involved in HUGE transactions (think BHP-RIO). so think about which comapnies based on their size, location, and balance sheet or lack thereof would be able to underwrite a lot of those huge deals and compete to win the business.
you can't go wrong with GS, JPM, MS, Citi, DB, UBS, ML, CS
send me a PM if you want to know more about a sepcific group... i intereviewd at a lot of those places.
Bumpin' a thread from the past. Anyone have any insight on how this has changed? Obviously this is by deal value but are MS, UBS and CS the best as far as exit opps go?
League tables this year (last time i saw them) for M&A
1 - GS
2 - CS
3 - JPM ( i think)
Could someone please let me know for any significant deals in EU that happened? And where to get basic industry trends for the coming years?
Folks,
I have soon an interview with the "big boys", MD, ED and VP (staffer). Any thoughts? What would be their focus in the interview? I assume more fit/behavioural questions and my experiences rather than pure technical staff?
Please share your thoughts.
Thanks.
Bump.
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