Institutional Investors

Using Institutional Data To Evaluate M&A Opportunities

Investment professionals, financial executives and mergers and acquisition execs are increasingly using “alternative” data to get a competitive edge. Satellite images of shopping center parking lots, trucking schedules, mobile phone usage patterns and more can offer insights that create an edge in finding investment opportunities, vetting acquisition targets and closing deals.

Get The Timeless Reading eBook in PDF

Get the entire 10-part series on Timeless Reading in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

We respect your email privacy

Q2 hedge fund letters, conference, scoops etc

M&A Opportunities

mohamed_hassan / Pixabay

eVestment clients are increasingly using eVestment’s unparalleled data on the institutional investment business as an alternative data source in identifying and assessing potential acquisition or merger targets around the world as the asset management business continues to evolve.

“Clients tell us they’ve used eVestment to vet firms as they look to build their product line up, geographic reach or capabilities through a merger or an acquisition,” said John Molesphini, eVestment’s global head of strategic engagement. “So, in addition to being among the top solutions for investment managers, investors and consultants to share information and connect, we’ve increasingly become a source of alternative deal-making data as M&A activity in the asset management space heats up.”

eVestment’s new whitepaper, “M&A in the Asset Management Space: Using Institutional Data to Evaluate Opportunities,” highlights the disruption and evolution of the asset management industry and the unique ways eVestment data is being used by firms seeking to build their brands through a merger or an acquisition.

Some ways eVestment data can help identify and assess M&A targets include:

  • Retail and institutional investors have different time horizons and behave differently, so knowing a target firm’s retail/institutional AUM ratio, which eVestment tracks, can impact long term projections of growth and flows, and thus financials of a deal.
  • Client retention can be a key driver of long-term value in an M&A deal as well. A target firm may provide information on its client retention during the M&A process, but that information is of limited value in a vacuum. By comparing the target firm’s client retention to peer firms with eVestment data, the potential acquirer can better understand if the firm they are evaluating has higher or lower client retention compared to similar firms.
  • A firm looking at acquisition targets may be looking to broaden its product breadth, geographic reach and key professional expertise. eVestment tracks information like firm investment strategies, office locations and key professionals’ background, giving an acquirer opportunity to better understand how target firms might complement their own expertise, personnel and reach.

“With recent asset management M&A deals carrying multi-billion-dollar price tags, any additional source of data that can help the firms or their investment bankers assess the best targets for acquisition and the valuation of those deals is crucial to making the best deal possible,” said Molesphini. “It’s really exciting to see how our clients are using our unique data and analytics capabilities in this way.”

To download a copy of the new whitepaper, please click here.

Article by Maria Simon, eVestment

LEAVE A COMMENT


Saved Articles
X
TextTExtLInkTextTExtLInk

Are you a smart investor? Join tens of thousands of sophisticated investor reading our authoritative free newsletter

* indicates required


Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Sign up today and get three months free

Use coupon code vip19 or click on the button below

Limited time offer only ENDS 10/31/2019 or after next 25 20 subscribers take advantage whichever comes first – please do not share this discount with others

 

0