Consistency of IB Relationships

When is the right time to expand IB coverage to a new sector? Banks tend to follow growth – adding coverage to rapidly growing segments of the fee pool. However, this may not be the most effective approach for a bank that needs to win new clients, and unseat incumbent relationships.

Today’s FCS Intelligence report considers the share of follow-on ECM fees paid to non-IPO bankers. If this share is high, incumbent banks are being replaced by new banks at a high rate – and ideal scenario for a would-be market entrant. Our analysis of the Pharmaceutical and Energy sectors shows that the period of greatest IB relationship volatility occurs at the very bottom of a market downturn. Rather than chase growth, banks might be better served by expanding counter-cyclically into beaten-down sectors.

Click here to download report as a PDF

#IB #FollowOn #ECM #IPO #Energy #Coverage #Expansion #MarketEntry #CantorFitzgerald #BTIG #Macquarie #Evercore #Pharma #PNC #HarrisWilliams #Qatalyst #MA #Technology #PrivateEquity #Software #LBOs #Financing

Recent Posts
Search By Tags
No tags yet.
Follow Us
  • LinkedIn Social Icon
  • Twitter Basic Square

© 2017 Freeman & Co. LLC

The information and services provided on this website are not provided to, and may not be used by, any person or entity in any jurisdiction where the provision or use thereof would be contrary to applicable laws, rules or regulations of any government authority or regulatory or self-regulatory organization or where Freeman & Co. or its affiliates is not authorized to provide such services or information.  Material on this website is not an offer to sell or a solicitation of an offer to buy any securities.  Transactions, products and services discussed on this website may not be appropriate for sale or use in all jurisdictions or for all investors.  The information on this website is not investment advice or other advice and should not be deemed a recommendation of any transaction or security.  Transactions described on this website are a selected sample and are not necessarily reflective of overall performance by Freeman & Co. or its affiliates.

  • Tumblr Social Icon
  • LinkedIn Social Icon