“Big Banks Reach for Small Deals as
Merger Boom Slows Down” by Liz Hoffman was published in the Wall Street Journal on April 1 of 2019
at 10:03 p.m. The article talks about how investment bankers have found a new
interest in advising smaller companies on which deals are the most productive
for them, as a great deal of Wall Street firms have been sliding downmarket in a
way that is damaging the market. The total value of U.S. merger deals has
increased between 2017 and 2018 in terms of deals above $5 billion, but the
number of these deals has been decreasing, which is something that creates a
bit of a contradiction. In addition to this, the gap between private-equity
owned companies and publicly owned companies is becoming larger and larger,
with those which are private-equity owned rising more and more on a yearly
basis. The article also states that the majority of large banks today are
seeing the middle market as a way for young bankers to have a way to prove
themselves, giving them the opportunity to work with senior executives and
demonstrate that they are willing to learn efficiently. The relation that this
content has to the overall field of marketing is rather heavy, considering that
it has to do with investment in and out of certain areas of the market as well
as understanding which companies are the most promising for certain
transactions and outcomes. It is important that those who are working within
this field know what they should be looking out for and which companies they
should work with the most, taking into consideration the size and value of
their deal and their company in comparison with those of others. As a result of
this, these kinds of results and discoveries have been proven to bring hope to
companies all throughout the world, with the author citing some as claiming
that they thought they were too small for large banks and companies to want to
get involved with them, but that they are pleasantly surprised that they are
receiving this opportunity, and that they are going to do whatever it takes to
maintain this relationship and grow accordingly with the market.
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