Small M&A Firms Have Changed The Deal Market
A couple of weeks ago we mentioned an article in City A.M. about M&A boutiques grabbing market share from the large investment banks.
The FT publishes a similar story, based on the same Dealogic figures, about how small M&A firms have changed the deal market.
…the advisory landscape has exploded into the almost 3,800 houses that worked on M&A deals in the past seven years and submitted details to industry monitor Dealogic…Interest in the contrasting fates of these “boutiques” — which span everything from the big-time dealmaker trying to build the next Goldman Sachs to one-man bands trying to stave off retirement — remains as high as ever.
Andrew Scola, an M&A Integration and Carve Out Specialist points out in a LinkedIn post some benefits to using small, specialist M&A consultancies:
Focus on M&A specialism and competence and the expertise that follows from this on an individual and organisational level
Experience of the client-facing individuals, enabling smaller expert project teams (less juniors)
Value of the services because of the efficiency and expertise, coupled with lower structural costs and typically more transparency on costs
Choice of professionals within the network allowing clients to pick team skills and profiles with precise requirements tailored to their needs
Flexibility and agility of a smaller (hungrier) firms makes working with them more suited to the client’s needs than that of the consultancy
Cultural fit can be found (less consultant-like?) and better attitude in terms of collaboration with client teams and third parties
Transfer of knowledge in-house because consultants are embedded in client teams, not a separate suited clique
No conflicts of interest or cross-selling (which clients hate)