Awards for Excellence 2016
Goldman led some outstanding M&A transactions, but Lazard stands out here, not just for its M&A practice, but also in areas such as restructuring, capital markets advisory, and corporate preparedness (as shareholder activism takes root in Europe). That is why it wins the best bank for advisory award.
Like its close rival Rothschild, Lazard advised on a higher number of M&A deals than the US banks, although Lazard focuses on bigger deals and has fewer bankers in Europe than Rothschild. Both approaches naturally have advantages and disadvantages. Rothschild might say that focusing on a higher number of smaller deals makes for a less lumpy revenue stream, while the attention of bigger banks can push down fees in the bigger deals. Aside from basic economies of scale in bigger deals, however, Lazard says it has managed to convince clients to pay higher fees than bigger banks on the same deal, given its focus on pure advisory.
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Matthieu Pigasse, Lazard: demonstrated its M&A and restructuring prowess |
In any case, Lazard’s model appears to have continued to serve it well in western European volumes this year, with five $20 billion-plus deals (and two more than $80 billion, namely Shell’s acquisition of BG Group and the AB InBev-SABMiller deal) compared with only sub-$10 billion deals at Rothschild. Lazard rose in the M&A league table, even if its lead over Rothschild narrowed. Lazard’s more established US business is helping US-related M&A themes in Europe, such as the strong dollar and the shift in European interest away from emerging markets (as in Capgemini’s acquisition of Igate). General Electric’s $16.9 billion acquisition of Alstom’s thermal, renewables and grid businesses had to navigate French sensitivities, especially given Alstom’s strategic value to the state. Lazard’s Paris-based global head of M&A, Matthieu Pigasse – a former finance ministry insider – played an important role.
In addition, Lazard’s restructuring prowess could be seen in completed multi-billion dollar European deals for Stemcor and General Healthcare Group in the UK, Italy’s Sorgenia, Danish shipping firm Torm and Spanish conglomerate San José. Finally, Lazard invested in capital markets advisory and notched up landmark IPO mandates, including Worldpay, which rose in secondary trading despite the volatile market back-drop. Lazard advised the company and the owners Advent International and Bain Capital.
