And I’m not sure we’re going to see a lot of take-privates because the public market valuations just continue to go up. And there’s, frankly, not that not that many interesting take-privates at this point. But I think we’ll certainly see a lot of private activity. And, one of the areas that I think we’re going to see a lot of activity over the next 12 months is really investing in suppliers that are that are weighted towards the OEM supply chain.
Chapter 9 The IPO Process
Vito has over 30 years of investment banking experience and has advised on over 200 transactions valued at over $250 billion. Prior to his current role, he was the Global Head of Mergers and Acquisitions, responsible for the firm’s overall M&A efforts across all sectors. Vito has extensive experience in originating and executing transactions in general industrials and diversified services (with a focus on aerospace, defense, and government services), communications, media and entertainment, technology, business services, and consumer and retail sectors. I think it is a healthy M&A environment, a healthy M&A market, where corporates are still leading the way, but private equity is increasingly relevant. I think the caveat, it’s a fair point that you make, is that public company M&A is generally being rewarded, but it has to be strategic and in the zone. You know, vast departures from the core, kind of experimental, new segments that you know, investors are a lot more discerning.
- Michael brings considerable experience and an extensive network to RBC.
- But you know, you and I and others are constantly getting questions from clients about how to prepare themselves, depending on which party is in control, and sort of what their what their primary objectives are.
- Really just overall leading to an increased level of operational efficiency and just overall strategic advantage.
- Blair joined RBC in 2010 as a Director, Head of Finance.
Healthy corporates are poised for deals
- So it’s yet another dynamic out there, which I’d say on the ledger of favorable, unfavorable tilts towards favorable in terms of getting deals done.
- Derek joined RBC in 1995 and has held a broad array of responsibilities across the firm, and served as Global Head of Investment Banking prior to his current role.
- The European defense index is up about 95% and a lot of that is growing, as relates to just the growing presence in NATO membership, increasing their level of defense spending across the board.
- But for the most part, this core, highly strategic M&A, you know that just goes on, but you manage your timelines accordingly, the election is highlighted in every deal timeline, but regards the election itself.
- Prior to Credit Suisse, Mr. Thurlow spent 16 years at Merrill Lynch, where he held various Financing, Operational and COO positions within Merrill’s Treasury, Equity Derivatives and Prime Brokerage divisions in New York, Hong Kong and Australia.
Absolutely, very consistent across all verticals within industrials, the desire to buy companies, quality companies in the U.S. Our conference was obviously focused on public corporates, but private equity, always, since the beginning, has been very active in industrials and continues to do so. George, let’s start with you, because services, I’d say, if not at the very top, certainly near the top of those sub verticals, industrial services has seen a ton of private equity interest and activity. He is responsible for the bank’s overall M&A effort across all industry sectors. Historically, he has extensive sector experience with origination and execution of transactions in industrials (with a focus on aerospace, defense and government services), communications, media and entertainment, technology, and business services. He shares responsibility for coverage of banking clients and prospects, including corporate finance industry groups, mergers and acquisitions, equity capital markets, leveraged finance, and loan and high-yield capital markets teams.
How does the dealmaking environment look for 2025?
I mean, the other piece we always talk about Josh is just trying to make sure that even large private equity assets have multiple alternatives, and one of them that you mentioned earlier that it’s been great to see that market revive the bid is on the IPO side. And, you know, we take a look at, you know, like StandardAero out of Carlisle’s portfolio, having, you know, what I would call a very successful IPO so far, you know, certainly upsides from a billion to 1.4 you know, priced at 24 bucks a share, currently trading above 32 per share. I think there was a an appetite out there for a strong industrial business like this, especially in aerospace and defense. joshua rosenbaum rbc Maybe give me some thoughts on the IPO market and how you’re seeing it as a true alternative for some of our clients that are thinking about monetizations.
Creativity is key to unlocking private equity deals
I think we’re, we’re in the early innings of what I think is going to be a very active and very interesting M&A market where people are utilizing M&A, whether it’s companies or private equity firms, to get exposure to some of these large, sustainable, mega trends that we see out there. And I think, as a corporate, if you have a good strategic plan, if you’re if you’re thoughtful and willing to do intelligent M&A, I think the markets are very supportive. I think we’re starting to see the signs of, hopefully, a constructive IPO market for industrials companies. So obviously, as private equity considers exits, I think the IPO option is becoming increasingly viable.
Over the past 26 years, Jim has completed transactions of all sizes across the full spectrum of industry sectors. Lindsay has over two decades of experience in capital markets, spanning trading floors across North America, Europe, Australia, and Asia. She began her career in Investment Banking with RBC in Toronto and spent 10 years in various roles across equity markets at a global bank in London before returning to RBC.
But, you know, give me some perspective of what you’re hearing from the private equity clients, both in terms of newer transactions that they’re looking at, but also in terms of how they’re considering transactions on the exit side. And I think, you know, Josh, you and I have always said, like, once we get to a constructive market from a financing perspective, we’re going back to regular way. LBOs versus continuation funds or minority sales or the like that are going on a bit more these days.
Q: Why is investment banking so difficult to teach?
And the kind of the segue I have here, and we’ll talk about private equity a little bit, is this is creating opportunity for private equity, for some of these corporate divestitures, where there isn’t a natural other corporate buyer or potentially antitrust considerations enter the fray. Yeah, a large swath of industrials, and more broadly, all sectors are tied to interest rates. They’re definitely more interest rate sensitive sectors. Anything tied to housing, you know, clearly, people look at interest rates very closely. In theory, this is nirvana for the housing sector and construction related sectors. It’s shown in the public equity markets, where, you know, multiples are looking ahead.
Charting momentum in Industrials M&A Transcript
Kent is a widely recognized expert in complex advisory, financing and out-of-court restructuring transactions with almost 30 years of experience. Kent has spent much of his career advising media clients as well as West Coast based private equity clients. To date, Kent has worked on over $250 billion of financing assignments across a broad range of products including leverage finance, equity, investment grade and film/content financing, and in excess of $150 billion of advisory work for clients in his career. During his time at Macquarie, Michael was appointed Head of Corporate Advisory and Co-Head of Corporate Finance, which ultimately became Macquarie Capital.
He advised on the restructurings of WorldCom and Nortel, two of the largest done to date. He joined RBC Capital Markets in January 2015 as the Co-Head of Financial Sponsors and was appointed Co-Head of U.S. Since then, Matthew and Jim Wolfe have successfully progressed the U.S. Investment Banking strategy by recruiting and developing talent, growing our advisory franchise, further balancing our GIB product mix, and expanding market share. Patti is a strong advocate for diversity and inclusion.
Before starting her corporate career with CGI, a Canadian IT services firm with global operations, she earned her Ph.D. in Management from HEC Montreal. At CGI, Celine headed up the organizational change management center of expertise and consulted on organizational design, development and change across industries. She then led enterprise-wide change management and governance programs at Rogers Communications before returning to consulting. Derek Neldner is CEO and Group Head of RBC Capital Markets and is a member of RBC’s Group Executive.
He also spent seven years with Macquarie in New York with a focus on building the firm’s private equity buy-side and infrastructure businesses. On his return to Australia in 2014, Michael chaired Macquarie’s Client Coverage Group with a broad sector focus and responsibility. His recent experience covers the Industrials, Healthcare, Technology, Real Estate, Infrastructure and FIG sectors.