Hey monkeys,
I attended a firm's campus presentation today, and one of the slides said the following:
On the advisor side to world's largest multinational firms, as opposed to the creditor side
Can someone explain what this means to me? This was an elite boutique firm, and I don't see how they could ever be on the creditor side (as they don't have a balance sheet).
| +159 | How to stop feeling like shit for not making it in IB? | 58 | 36m | |
| +117 | If Tik Tok is forced to sell, what banks do you think would be involved in the deal? | 59 | 1s | |
| +83 | Updated LA Banking Scene (2024) | 60 | 55m | |
| +39 | Ranking banks that went under | 22 | 3m | |
| +37 | Burnt Out M&A ASO | 19 | 2s | |
| +35 | Relevance of A-Levels for U.K. London recruiting | 24 | 1h | |
| +32 | A strategy for SA applicants late to the game like myself | 15 | 22h | |
| +27 | Series 79 Help / Tips to Pass The First Attempt | 11 | 2d | |
| +26 | Intern Ettiquette | 4 | 1d | |
| +23 | What are hours like at BBs in London? | 47 | 23h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
That's the exact point ... they are saying that they only advise they do not loan money (creditor)
Just to test my understanding: under what instance would a firm engaged in a typical sell-side M&A transaction require a creditor? I'm guessing that the acquirer of the firm being sold might require a creditor if it doesn't have the capital to purchase the firm outright?
Sellside process would not per say need a creditor. It is mainly on the buyside where a bank like BAML or JPM can provide both the advisory services and the financing services (new term loan, bridge financing, etc.). Think of the advisor fee and the financing fee as separate. Not uncommon for a shop like that only does advisory to assist the company in finding a suitable financing partner as well.
Rewrite the original point as: "We are an advisor to some of the world's biggest banks, not the banker." You can imagine that their could be a conflict of interest when the person advising you is also making money on how much debt you are taking on in a transaction.
*there could be a conflict ...
Quas inventore et omnis voluptatem et. Aut autem nisi praesentium quaerat ipsum iure. Hic autem illum quia totam. Iste fuga porro optio. Soluta cupiditate quia quia voluptatem beatae.
Cumque at adipisci harum repellendus voluptatibus consectetur. Quia porro nostrum dolor debitis eos animi.
Dicta pariatur beatae ipsa quaerat nisi. Molestias ab quae sit facere. Libero recusandae voluptates ea assumenda molestias. Quod omnis velit ut minus eius porro laudantium. Eum est sint modi repellat iusto.
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...