Tremendous difference in M&A fees among The BBs
hey guys this table is the Thomson Reuters 2011 Global M&A Completed Deals (Thomson Reuters Deals Intelligence)
Rank Value Advisory Fees (
MS 636, 1684
GS 631. 1802
JPM 509, 1574
BAML 387, 1143
Citi 367, 721
UBS 348, 1027
CS 337, 1148
DB 293, 853
Barcap 268, 764
Lazard 248, 688
Ive divided the rank value figures by 1K, and the advisory fees are reported in USDm. A couple of things that stand out from these numbers is that:
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Although UBS and CS completed fewer deals than other BBs, their advisory fees are still on par with some higher ranked BBs such as BAML and far greater than Citi.
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Citi, on the other hand stands at 5th place and still collected the lowest in fees out of all the BBs.
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Would the above 2 points imply that some BBs such as Citi have a deteriorating IBD business, and just lobby on most of the deals instead of actually providing financial advice to the clients? I know of course that Citi worked on Express-Medco 34 bn one and Lubrizols 9bn deals but other than that, it seems there is a lot of just getting deal-credting going at the firm just for the sake of the league tables. If this was not the case, then they should have net far more in M&A fees. On the other hand, some places such as UBS which we actually think are shitty might not be doing that bad.
Would love to hear some comments/views on this.
Why do you care about this?
I do because there's a lot of bulge bracket bashing which goes on the forum, and it seems as if the stats dont confirm that.
A lot of the bashing isn't based solely on league table and fees. Lazard is last on that list and most people would work there over many of the BBs. Also, although BAML is fairly high it's name and bonuses still suck. Who knows if UBS and CS's IBD will still be around in a few years.
This information basically confirms all the bashing that goes on here..people will continue to bash "lower tier" BB's such as UBS/CS/DB and continue to put GS/MS/JPM in their own category just because of the amount of their fees.
ok fyi citi is 5th in completed deals yet collected the lowest in fees. would u call it a lower tier bb then?
I don't want to put any of these firms in a category..they're all BB's to me and most people would be lucky to work at any of these firms. Great information btw.
Interesting information
CS is not lower tier BB, what are you smoking...
I don't understand the chart in the OP - is that value of completed deals? Because what you talk about in your bulletpoints 1-3 are completely different from what the chart's saying if the chart is advisory fees.
Yes the numbers on the left are the value of completed deals, and the numbers on the right are advisory fees. It's a little bit misleading if some banks have completed more mandates than others such as Citi completing more deals than 5 other firms below it (UBS,CS, Barcap, DB) yet taking a very small amount home. seems as if the company has lobbied more to get its name on the deal teams. does that make sense? if that is the case, it doesnt say very well about the company's IBD operations.
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