A full-fledge investment banking research support to a UAE-based bulge-bracket investment bank.
About Client:
A large UAE-based investment bank wanted a one-stop solution for their research needs across M&A, equity & debt capital markets, to improve value-addition from their inhouse team & save additional cost due to budget constraints.
Business Problem:
- There are ~18 bankers who were looking for banking support, across ECM, DCM, and M&A functions.
- Bank had an asset-light strategy with respect to hiring Associates in-house.
- Wanted to keep low fixed costs to deal with the peaks and troughs of the banking business.
- Leverage optimum data sources too, by leveraging vendor’s data subscriptions for effective research
ValueAdd Solution:
ValueAdd staffed three associates led by a senior Team Lead, to provide the required support across M&A, ECM, DCM, and Advisory. The associates had an average 2 years of experience in banking.
Debt capital markets support:
- IMs, Pitchbook, trading comps, and league tables for debt issuances in the region
- Initiation notes/memos on sukuk issuer, with detailed analysis of issuer, capital structure analysis, liquidity & maturity profiles, Sukuk/bond comps, and shadow rating
Equity capital markets support:
- IMs, Pitchbook, trading comps, and league tables for equity and related issuances in the region.
- IPO valuation notes, highlighting valuation arguments, SWOT, business segmental analysis, financial analysis, and competitive landscape.
M&A support:
- Creating M&A pitchbooks, industry research, followed by company profiles, highlighting probable synergies of acquisition, transaction comps & trading comps.
- Creating pro-forma merger models of attractive target companies to arrive at valuation.
Market intelligence and library support:
- Provide market intelligence, including league tables, pricing trends, monthly report on new deals, sector newsletters, and competitive intelligence.
- Provide library/data support including supplying required data, sector reports, broker reports, rating reports, and other ad hoc pieces of analysis (sensitivity analysis).
- Graphical support across charts, slides, decks, and data as per the client’s formatting style guides.
Benefits Delivered:
- A one-stop shop research solution for varied IB research requirements.
- Worked like an extension of the Client’s team, offering them same-time zone support on live deals.
- Cost-effective research solution