***Disgruntled, fired, or bored I-bankers aren’t all parading into private equity—some of them (or I suppose a lot of them, according to Corporate Dealmaker), are moving into corporate development. Which is basically doing the same thing they were doing—M&A—except now they only have one client.
***The average large company gets one third of its growth via acquisitions, DealScape reports. This is certainly not surprising. Once a company fully penetrates the markets of the categories its in, how else is it supposed to grow? Building new concepts and getting approval to spend money on creative, untested and perhaps risky new ventures isn’t a walk in the park for giant corporations that, thanks to bureaucracy and red tape, move slower than molasses. So of course they’re buying growth. The key (to me) is weather they can extend the growth they bought by using their existing resources. And by that, I mean, is the sum of their acquisitions greater than the value of the separate pieces?
But the latest Merrill writedowns raise new questions about whether banks themselves understand the extent of their problems.
Even worse, it’ll be downgraded to junk status if it sells any of its BlackRock stake.
***Dealscape very nicely sums up what is less than surprising to me: Voluntary transparency rules for UK PE and VC firms aren’t creating a splashy seachange in the negative views that politicians and people in general have about the industry. I’m no expert, but I think it’s the “voluntary” part.