LONDON Jan 4 Robey Warshaw, the boutique M&A
firm that has landed some of the mega-merger deals of the
decade, earned nearly 37 million pounds ($45.5 million) in
profit in its past financial year, recently released filings
Founded in London only three years ago by Simon Robey and
Simon Warshaw, former high flyers at Morgan Stanley and
UBS respectively, the firm now ranks fourth in Britain
for merger and acquisitions business, Thomson Reuters data
The tiny firm has only 15 employees, yet it has landed
advisory roles on some of the largest deals of the decade. Among
them were the $100 billion-plus acquisition of British brewer
SABMiller by AB InBev and oil major Shell's
$70 billion purchase of oil and gas company BG.
Small firms such as Robey Warshaw have been snapping up
veteran bankers fleeing bureaucracy and shrinking paychecks at
the big players and are proving popular among companies that
value their niche expertise and independent advice without the
the type of cross-selling sometimes favoured by big banks.
Such boutique firms now earn nearly half of all M&A fees in
Europe, winning market share and top dealmakers from global
investment banks, Reuters reported in August.
Recently released filings show that Robey Warshaw achieved
turnover of 43.4 million pounds in the year to March 31, up from
23.9 million pounds a year earlier.
Profit of 36.6 million pounds, up from 19.4 million pounds
in the previous year, was shared by the firm's three partners --
Simon Robey, Simon Warshaw and Philip Apostolides, also a
former Morgan Stanley banker.
The highest-paid partner was eligible for 18.2 million
pounds of the annual profit, illustrating how lucrative boutique
firms can be for senior dealmakers.
Megadeals such as the AB Inbev-SAB Miller and BG-Shell
acquisitions drove up global M&A volumes by 41 percent to a
record $4.4 trillion in 2015. In 2016, global M&A volumes fell
17 percent from that peak to $3.6 trillion.
British M&A totalled $177.5 billion in 2016, down sharply
from a record $394.8 billion in 2015 -- which featured those two
megadeals -- but in line with the five-year trend.
($1 = 0.8141 pounds)
(Editing by David Goodman)