IPOs and M&As — they’re the type of deals investment bankers love.
And the U.S. markets for initial public offerings and mergers and acquisitions improved considerably in 2013, hauling in small fortunes for the investment bankers who helped raise capital or acted as financial advisors on the mega-huge deals.
Larger transactions were usually handled by “bulge bracket” banks, or large multinational institutions whose names are generally familiar to the public. But some deals also starred smaller, less known boutique investment banks.
The prospects for 2014 look just as strong for both IPOs and M&As, barring unforeseen economic developments, and that means investment bankers should have a very busy and prosperous year.
Here’s a look at some of the top IPO and M&A deals — and the investment banks involved — in 2013.
The IPO market surged in 2013 to 222 deals valued at $55 billion, compared to 128 deals valued at $42.4 billion in 2012, according to Renaissance Capital. The 2013 performance was the best since 2000. The top IPO deals included:
1. Plains GP Holdings LP — $2.8 billion. The underwriters/managers: Barclays, Goldman Sachs, J.P. Morgan, Bank of America-Merrill Lynch, Citi, UBS, Wells Fargo, Deutsche Bank, Morgan Stanley, Raymond James, RBC Capital Markets.
2. Hilton Worldwide Holdings Inc. — $2.4 billion. The underwriters/managers: Deutsche Bank, Goldman Sachs, Bank of America-Merrill Lynch, Morgan Stanley, J.P. Morgan, Wells Fargo, Blackstone Capital, Macquarie Capital, Barclays.
3. Zoetis Inc. — $2.2 billion. The underwriters/managers: J.P. Morgan, Bank of America-Merrill Lynch, Morgan Stanley, Barclays, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, Jeffries & Co., BNP Paribas.
4. Twitter Inc. — $1.8 billion. The underwriters/managers: Goldman Sachs, Morgan Stanley, J.P. Morgan, Bank of America-Merrill Lynch, Deutsche Bank, Allen & Company, CODE Advisors.
5. Antero Resources — $1.6 billion. The underwriters/managers: Barclays, Citi, J.P. Morgan, Credit Suisse, Jeffries & Co., Wells Fargo, Morgan Stanley, TD Securities, Tudor Pickering Holt & Co., Baird, BMO Capital Markets.
Mergers and Acquisitions
Though the global M&A market is back to its approximate pre-recession level, worldwide M&A activity has generally stagnated in recent years. However, in the United States, M&A deals were up 11 percent in 2013, totaling more than $1 trillion.
Here are some of the top M&A deals and the investment banks involved:
(All the M&A deals were announced in 2013, but some of these transactions won’t technically be completed until later this year.)
1. H. J. Heinz Co. — $28 billion. Buyers: Warren Buffett’s Berkshire Hathaway and GE Capital. Centerview Partners and Bank of America-Merrill Lunch were advisors to Heinz. Moelis & Co. was adviser to a Heinz board of directors committee. Lazard was lead financial advisor to buyers, assisted by J.P. Morgan and Wells Fargo.
2. Dell Inc. — $24.4 billion. Buyers: Dell founder Michael Dell and Silver Lake. J.P Morgan and Evercore have been advising Dell’s board. Goldman Sachs, Bank of America-Merrill Lynch, Barclays, Credit Suisse, Centerview and RBC Capital have been advising buyers.
3. Virgin Media Inc. — $23.3 billion. Buyer: Liberty Global Inc. LionTree has acted as lead advisor to Liberty Global; Credit Suisse has also acted as an advisor. Goldman Sachs and J.P. Morgan have acted as advisors to Virgin.
4. Life Technologies — $13.6 billion. Buyer: Thermo Fisher Scientific. J.P. Morgan and Barclays have acted as financial advisors to Thermo. Deutsche Bank and Moelis & Co. have been advisors to Life Technologies.
5. Onyx Pharmaceuticals — $10.4 billion. Buyer: Amgen. Lazard was lead advisor to Amgen, while Bank of America-Merrill Lynch has also acted as an advisor. Centerview Partners have advised Onyx.
And those are just the top domestic (U.S.) merger and acquisition deals of 2013.
The largest global M&A deal in 2013 was Verizon Communications’ agreement to pay $130 billion to buy U.K.-based Vodafone Group’s American wireless business. It’s the third largest corporate deal in history. Barclays and Bank of America-Merrill Lynch acted as financial advisors to Verizon, while Goldman Sachs and UBS advised Vodafone.
Sources: Renaissance Capital, StreetInsider.com, Bloomberg, Reuters, and Business Wire.
Jay Fitzgerald is a business journalist based in Boston. Over the years, his articles have appeared in The Boston Globe, the Boston Business Journal, the Boston Herald and other publications.