Some investment bankers fear losing their competitive edge as they
pitch digitally for business, amid concerns that younger bankers are falling
behind
By David French,
Matt Scuffham, Krystal Hu and Imani Moise
NEW YORK (Reuters) - Cary Kochman kicked off a sale process for U.S. printing
services provider InnerWorkings
Inc just as lockdowns to limit the spread of the novel coronavirus took
effect in March.
The Citigroup Inc
global co-head of mergers and acquisitions, who was advising InnerWorkings on
clinching a deal, had to rewrite a playbook he used for most of his 30-year
career.
There would be no
on-location due diligence for perspective buyers and their lenders. Tours were
carried out virtually by people walking around the company's facilities with
iPads. Negotiations were done remotely.
By July, Koch man
had secured a $177 million sale of InnerWorkings. The price was equivalent to
where the company traded as the March lockdowns began, and a 127% premium to
its market value the day before the announcement.
His bank's
investment banking revenue was up 25% year-on-year in the second and third
quarters as companies took advantage of a stock market rally and cheap
financing to pursue dream deals and capital raises.
While remote
working has paid off handsomely, Kochman and his peers predict bankers will hit
the road to meet clients again once the COVID-19
pandemic subsides.
"We are
winning new business and beauty contests, but it is hard in this moment to
replace an existing and trusted relationship," Kochman said.
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