Baird has emerged as a new leader in European Industrials mid-market M&A operating out of the UK and Germany. 2015 – 2016 YTD in Europe, the bank advised on 16 transactions in the Industrials space and 40 deals in total. This suggests a 40% contribution from the Industrials sector in terms of deal count and is also proof of the bank’s unparalleled expertise within this sector.
14 of these 16 Industrial transactions were cross-border deals and accounted for $4bn of deal value. From 2010 to 2014, Baird did not feature among Mergermarket’s Top 10 mid-market banks in the Industrials sector in Europe, but today it tops the list.
The Industrial sector deals that Baird worked on during this period in Europe include the sale of Metabo AG (manufacturer of electric tools and machines) to Hitachi Koki and the sale of SimonsVoss Technologies GmbH (manufacturer of wireless digital locking and access control systems) to Allegion.
Key factors driving this growth were Baird’s unhindered focus on providing high quality advice, global reach and deep sector knowledge, private equity players’ continued interest in industrial sector deals, and investors’ appetite for growth through M&A in an otherwise slow growth economic environment.
Since 2010, Baird has successfully closed over 450 transactions across the globe, cumulatively worth US$ 111B. In 2015, 90% of Baird’s European M&A transactions involved a private equity buyer or seller with 11x average EBITDA for European sell-side transactions. This makes the bank one of the top financial advisors of choice for private equity firms, also evident from the fact that Baird was named the 2016 “European Corporate Finance House of the Year” at Real Deals’ Private Equity Awards.
Other sectors of high importance for Baird include consumer, technology and services, and healthcare. The bank has long been an active player in these sectors in the US, and now likewise in Europe. Senior bankers with expertise in the healthcare and consumer sectors have been brought onboard the European M&A team, to join the well-established technology and services team. Given these developments, it surely won’t be long until this independent, employee-owned investment bank features among the top European mid-market players across several sectors.
Sources: Merger Market, Baird
Affan Bin Mahmood