Dow Jones has announced that its web-based seminar, ‘Boutiques Battle the Bulge,’ which outlines the new role that boutique investment banks are assuming in the mid-to-large-size deal s
Dow Jones has announced that its web-based seminar, ‘Boutiques Battle the Bulge,’ which outlines the new role that boutique investment banks are assuming in the mid-to-large-size deal space, is now available for playback.
The presentation from Dr Mark Sirower of Deloitte Consulting and Arindam Nag of Dow Jones details how boutique investment banks are competing with global investment banks for business by delivering high levels of strategic and M&A advice at lower cost.
At the same time, small and large banks are finding ways to work together for financing deals in a new competitive financial landscape that will involve greater regulation.
‘Going forward, a hallmark of the boutique banks will be the ability to deliver bulge bracket-level advice for lower fees,’ says Arindam Nag, deputy managing editor of Dow Jones Newswires, covering the investment banking industry. ‘The majority of deals will be concentrated in the USD1bn to USD10bn space, with 30 per cent of the deals involving boutique banks. In this landscape, specialization rather than size matters, and the boutiques have positioned themselves advantageously, especially in the emerging markets.’
Dr Mark L. Sirower, a principal at Deloitte Consulting in New York and a leader of the firm’s M&A strategy practice, adds: ‘In M&A, corporations will often turn to the boutiques because of their advantages in terms of deep industry focus, senior banking experience and reputation for exceptional client service. There is a new financial services landscape with an increased emphasis on regulation which may have an impact on large deals. Already, some law firms are advising companies to get independent opinions about acquisitions. Boutiques are able to provide conflict-free client service because the financing is coming from a separate source.’
According to data provided during the seminar, bulge bracket banks still dominate in global deals under USD1bn, but boutique advisory banks are playing a greater role in deals that are larger than USD1bn.
The data also shows that although bulge bracket banks are still dominating deals worldwide, boutique banks account for approximately 26 per cent of all deals. Further, boutiques are making inroads in partnering with regional banks worldwide to make smaller deals happen.
The seminar is available at http://solutions.dowjones.com/campaigns/2009/4679/. Registration is required.
