Mergers and acquisitions is a facet of investment banking that yeields a high profit for the investment bankers. Investment banks are able to charge substantial fees thanks to this service, and mergers and acquisition fees bring in much more money than underwriting which is another primary service offered by investment banks. This service adds to the the list of financial perks that makes investment bankers some of the most well known and highest earning bankers in the financial industry.
There was a lot of corporate consolidation in the 1990’s, and this allowed investment banks to take advantage of consulting needed in the field. Mergers and acquisitions took a big knock in profitability during the big United States’ financial crises that happened in 2008-2009 because it is fundamentally based on cycles. 2010 was an incredible year for it, but it took another big hit in 2011 so it is something that investment banks and their bankers expect, and they are prepared for it. The preparation and profit are why mergers and acquisitions is still expected to be a major service offered by investment banks in the years to come. Morgan Stanley, Goldman Sachs, JP Morgan, Citigroup, Credit Suisse and BofA/Merrill Lynch are all considered to be the leaders in the field of mergers and acquisition consulting, and they are at the top of the mergers and acquisitions rankings for volume as well.
The range of services offered by investment banks for mergers and acquisitions is usually in relationships to the different points of the sales of companies and the acquisition like negotiations, business valuation and price and structuring. A major and ethical service offered is the analysis of the deals. Rules have changed quite a bit over time, and investment banks offer reports that vouch for how fair a transaction is.
Officially, mergers and acquisition consulting is a term for when an investment bank takes on the role to advise a seller or buyer. Sometimes investment banks are hired, and sometimes investment banks do a lot of sales’ pitching for their consulting services. Sell-side engagement is the official terminology used when an investment bank acts on behlaf of the seller, but an investment bank can also represent buyers. When an investment bank represents buyers in advising it is called buy-side engagement.
James Dondero of nexbank and his Highland Capital Management offers mergers and acquisition advisory services. James has been successful in the financial world his entire working life, and this is why Highland Capital Management has survived strongly through good economic times and the worst since 1993 when it was co-founded by James. He is the president of the firm, and he is also in charge of ensuring Highland Capital Management’s operational initiatives and strategic investments. Local and international clients use Highland Capital Management for a number of reasons with mergers and acquisitions being chief among them despite James being known for his ability to successfully manage hedge funds. The firm is located out of Dallas, Texas, and it’s highly recommended for clients in the United States.