To assist a major financial institution in adding additional advisory services to its European-centric M&A business. Areas considered were M&A, debt restructuring, debt advisory and equity advisory. Whilst an acquisition was preferred, we were also asked to look at potential team hires without onerous non-compete clauses in their contracts.
Extensive research and due diligence was required to advise our client on which advisory services would provide the best ROE. Since some advisory services are highly cyclical, we also wanted to ensure our client wasn’t overpaying for an impressive ROE that was performing at its peak or underpaying for modest returns that could shortly take off. Furthermore, it was necessary to ensure a good cultural fit, and the long term benefit from the acquisition for both parties. As this project took place over the 2016 European referendum, we also had to analyse the positive or negative impact this might have.
We conducted a thorough mapping of the potential acquisition opportunities where we felt there was sufficient upside to warrant an acquisition. We also looked at teams whose contracts were domiciled in jurisdictions where non-compete clauses were not relevant. We shortlisted five institutions, covering three different advisory services. These were extensively referenced in a confidential manner leading the client to reduce this list to two.