Boutique advisory firms now receive nearly half of all mergers and acquisition fees in Europe, stealing market share and top dealmakers from global investment banks hamstrung by a renewed focus on cost-cutting and regulations on how much they can pay.
Reuters reports that founded largely by veterans fleeing bureaucracy and shrinking paychecks at the large banks, these low-profile small firms are proving popular among companies who value their niche expertise and independent advice as opposed to mega-banks who tend to cross-sell other services like financing.
Advisory boutiques have captured 44% or $1.7bn of total completed M&A deals fees in Europe, Thomson Reuters data collected up to August 10 shows. Boutiques based in Europe captured 24.9%, or $964m, and other boutiques took the other 19%, or $728m.
That compares with 42.8% for the whole of 2015, 30.5% at the height of the last M&A boom in 2007 and 20.1% in 2000, when Thomson Reuters began recording the data.
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