Black Swann, M&A activity as a whole may be down but there are still plenty of deals being done. There’s the perception that the market has totally dried up but it’s simply not true. PE firms still have to put capital to work and old baby boomer entrepreneurs still need to “cash out”.
Etienne Wrote: ------------------------------------------------------- > jlx177 Wrote: > -------------------------------------------------- > ----- > > Forget about all the meetings, ppt slides, etc. > > Just assume that both teams are tasked tasked > with > > doing research & analysis and making an > investment > > choice. > > > > Who’s actually better at analyzing/making sense > of > > stuff and using that info to predict future > > performance? > > > ok - tougher to have a view on… I still have to > go ER, because people in ER have better knowledge > of finance/accounting. People in IB, like the > stereotype, talk better game. Wait a second…are we talking about - a deal involving publicly available information and buying free-float equity ? (somehow this is what I assume equity research deals with) ? - Or are we talking about a proper bidding & due diligence process/ etc. M&A deal ( this is what I assume IBD deals with )? Am I correct with regard to my 2 assumptions ? If yes than I would put my money on the IBD any day of the week
Well you’d have to make it fair. IBD’s get access to internal information, real information about a company’s true performance. Equity analysts’ don’t get that level of info. So, you’d have to assume that they both get the same.
Then I would still bet on the IBD, because the equity research won’t know how to analyse this internal info. (the same way IBD would be bad at making sector forecast and macro forecast and such).
I’d bet on the market and kick the crap out of both. How efficiently priced are IPO’s?
Well thats just it…I-bankers are in the business of SELLING mergers and IPOs so I am not at all surprised that the models you would have had to create supported such trades. Willy