Investment banking
The examples and perspective in this article may not represent a worldwide view of the subject. (December 2022) |
Financial market participants |
---|
Organisations |
Terms |
Part of a series on financial services |
Banking |
---|
Investment banking pertains to certain activities of a
Unlike
All investment banking activity is classed as either "sell side" or "buy side". The "
An investment bank can also be split into private and public functions with a
History
Early history
The
Further developments
Investment banking has changed over the years, beginning as a partnership firm focused on underwriting security issuance, i.e.
- investment banking (mergers and acquisitions, advisory services, and securities underwriting),
- asset management (sponsored investment funds), and
- trading and principal investments (broker-dealer activities, including proprietary trading ("dealer" transactions) and brokerage trading ("broker" transactions)).[6]
In the United States, commercial banking and investment banking were separated by the Glass–Steagall Act, which was repealed in 1999. The repeal led to more "universal banks" offering an even greater range of services. Many large commercial banks have therefore developed investment banking divisions through acquisitions and hiring. Notable full-service investment banks with a significant investment banking division (IBD) include JPMorgan Chase, Bank of America, Citigroup, Deutsche Bank, UBS (Acquired Credit Suisse), and Barclays.
After the
The traditional service of underwriting security issues has declined as a percentage of revenue. As far back as 1960, 70% of
Organizational structure
Core investment banking activities
Investment banking is split into
For example, Evercore (NYSE:EVR) acquired ISI International Strategy & Investment (ISI) in 2014 to expand their revenue into research-driven equity sales and trading.[8]
Investment banks offer services to both corporations issuing securities and investors buying securities. For corporations, investment bankers offer information on when and how to place their securities on the open market, a highly regulated process by the SEC to ensure transparency is provided to investors. Therefore, investment bankers play a very important role in issuing new security offerings.[7][9]
Front office
Front office is generally described as a revenue-generating role. There are two main areas within front office: investment banking and markets.[10]
- Investment banking involves advising organizations on mergers and acquisitions, as well as a wide array of capital raising strategies.[11]
- Markets is divided into "sales and trading" (including "structuring"), and "research".
Corporate finance
Corporate Finance transactions[12] |
|
Corporate finance is the aspect of investment banks which involves helping customers raise funds in capital markets and giving advice on mergers and acquisitions (M&A);[12] transactions in which capital is raised for the corporation include those listed aside.[12] This work may involve, i.a., subscribing investors to a security issuance, coordinating with bidders, or negotiating with a merger target. A pitch book, also called a confidential information memorandum (CIM), is a document that highlights the relevant financial information, past transaction experience, and background of the deal team to market the bank to a potential M&A client; if the pitch is successful, the bank arranges the deal for the client.[13]
Recent legal and regulatory developments in the U.S. will likely alter the makeup of the group of arrangers and financiers willing to arrange and provide financing for certain highly leveraged transactions.[14][15]
Sales and trading
On behalf of the bank and its clients, a large investment bank's primary function is buying and selling products.[16]
Sales is the term for the investment bank's sales force, whose primary job is to call on institutional and high-net-worth investors to suggest trading ideas (on a caveat emptor basis) and take orders. Sales desks then communicate their clients' orders to the appropriate trading rooms, which can price and execute trades, or structure new products that fit a specific need. Sales make deals tailored to their corporate customers' needs, that is, their terms are often specific. Focusing on their customer relationship, they may deal on the whole range of asset types. (In distinction, trades negotiated by market-makers usually bear standard terms; in market making, traders will buy and sell financial products with the goal of making money on each trade. See under
Structuring has been a relatively recent activity as derivatives have come into play, with highly technical and numerate employees working on creating complex structured products which typically offer much greater margins and returns than underlying cash securities, so-called "yield enhancement". In 2010, investment banks came under pressure as a result of selling complex derivatives contracts to local municipalities in Europe and the US.[17]
Strategists advise external as well as internal clients on the strategies that can be adopted in various markets. Ranging from derivatives to specific industries, strategists place companies and industries in a quantitative framework with full consideration of the macroeconomic scene. This strategy often affects the way the firm will operate in the market, the direction it would like to take in terms of its proprietary and flow positions, the suggestions salespersons give to clients, as well as the way structurers create new products.
Banks also undertake risk through proprietary trading, performed by a special set of traders who do not interface with clients and through "principal risk"—risk undertaken by a trader after he buys or sells a product to a client and does not hedge his total exposure. Here, and in general, banks seek to maximize profitability for a given amount of risk on their balance sheet. Note here that the
The necessity for numerical ability in sales and trading has created jobs for
Research
The securities research division reviews companies and writes reports about their prospects, often with "buy", "hold", or "sell" ratings. Investment banks typically have sell-side analysts which cover various industries. Their sponsored funds or proprietary trading offices will also have buy-side research. Research also covers
While the research division may or may not generate revenue (based on the specific compliance policies at different banks), its resources are used to assist traders in trading, the sales force in suggesting ideas to customers, and investment bankers by covering their clients.[18] Research also serves outside clients with investment advice (such as institutional investors and high-net-worth individuals) in the hopes that these clients will execute suggested trade ideas through the sales and trading division of the bank, and thereby generate revenue for the firm.
With
There is a potential conflict of interest between the investment bank and its analysis, in that published analysis can impact the performance of a security (in the secondary markets or an initial public offering) or influence the relationship between the banker and its corporate clients, and vice versa regarding
Middle office
This area of the bank includes treasury management, internal controls (such as Risk), and internal corporate strategy.
Internal control tracks and analyzes the capital flows of the firm, the finance division is the principal adviser to senior management on essential areas such as controlling the firm's global risk exposure and the profitability and structure of the firm's various businesses via dedicated trading desk product control teams. In the United States and United Kingdom, a comptroller (or financial controller) is a senior position, often reporting to the chief financial officer.
Risk management
Risk management involves analyzing the market and credit risk that an investment bank or its clients take onto their balance sheet during transactions or trades.
Middle office "Credit Risk" focuses around capital markets activities, such as syndicated loans, bond issuance, restructuring, and leveraged finance. These are not considered "front office" as they tend not to be client-facing and rather 'control' banking functions from taking too much risk. "Market Risk" is the control function for the Markets' business and conducts review of sales and trading activities utilizing the VaR model. Other Middle office "Risk Groups" include country risk, operational risk, and counterparty risks which may or may not exist on a bank to bank basis.
Front office risk teams, on the other hand, engage in revenue-generating activities involving debt structuring, restructuring, syndicated loans, and securitization for clients such as corporates, governments, and hedge funds. Here "Credit Risk Solutions", are a key part of capital market transactions, involving
Well-known "Risk Groups" are at JPMorgan Chase, Morgan Stanley, Goldman Sachs and Barclays. J.P. Morgan IB Risk works with investment banking to execute transactions and advise investors, although its Finance & Operation risk groups focus on middle office functions involving internal, non-revenue generating, operational risk controls.[20][21][22] The credit default swap, for instance, is a famous credit risk hedging solution for clients invented by J.P. Morgan's Blythe Masters during the 1990s. The Loan Risk Solutions group[23] within Barclays' investment banking division and Risk Management and Financing group[24] housed in Goldman Sach's securities division are client-driven franchises.
Note, however, that risk management groups such as credit risk, operational risk, internal risk control, and legal risk are restrained to internal business functions — including firm balance-sheet risk analysis and assigning the trading cap — that are independent of client needs, even though these groups may be responsible for deal approval that directly affects capital market activities. Similarly, the Internal corporate strategy group, tackling firm management and profit strategy, unlike corporate strategy groups that advise clients, is non-revenue regenerating yet a key functional role within investment banks.
This list is not a comprehensive summary of all middle-office functions within an investment bank, as specific desks within front and back offices may participate in internal functions.[25]
Back office
The back office data-checks trades that have been conducted, ensuring that they are not wrong, and transacts the required transfers. Many banks have outsourced operations. It is, however, a critical part of the bank.[citation needed]
Technology
Every major investment bank has considerable amounts of in-house
Firms are responsible for compliance with local and foreign government regulations and internal regulations.
Other businesses
- Global transaction banking is the division that provides cash management, securities services (including custody and securities lending etc.) to institutions. Prime brokerage with hedge funds has been an especially profitable business, as well as risky, as seen in the bank run with Bear Stearns in 2008.
- private investors (both directly via investment contracts and more commonly via investment funds e.g., mutual funds). The investment management division of an investment bank is generally divided into separate groups, often known as private wealth management and private client services.
- Warburgswere all merchant banks. At the present date, a LionTree, an independent investment and merchant bank originally became a "merchant bank" was the British English term for an investment bank.
Industry profile
The investment banking industry can be broken up into
In the United States, the Securities Industry and Financial Markets Association (SIFMA) is likely the most significant; however, several of the large investment banks are members of the American Bankers Association Securities Association (ABASA),[27] while small investment banks are members of the National Investment Banking Association (NIBA).
In Europe, the European Forum of Securities Associations was formed in 2007 by various European trade associations.[28] Several European trade associations (principally the London Investment Banking Association and the European SIFMA affiliate) combined in November 2009 to form the Association for Financial Markets in Europe (AFME).[29]
In the securities industry in China, the Securities Association of China is a self-regulatory organization whose members are largely investment banks.
Global size and revenue mix
Global investment banking revenue increased for the fifth year running in 2007, to a record US$84 billion, which was up 22% on the previous year and more than double the level in 2003.[30] Subsequent to their exposure to United States sub-prime securities investments, many investment banks have experienced losses. As of late 2012, global revenues for investment banks were estimated at $240 billion, down about a third from 2009, as companies pursued less deals and traded less.[31] Differences in total revenue are likely due to different ways of classifying investment banking revenue, such as subtracting proprietary trading revenue.
In terms of total revenue, SEC filings of the major independent investment banks in the United States show that investment banking (defined as M&A advisory services and security underwriting) made up only about 15–20% of total revenue for these banks from 1996 to 2006, with the majority of revenue (60+% in some years) brought in by "trading" which includes brokerage commissions and proprietary trading; the proprietary trading is estimated to provide a significant portion of this revenue.[6]
The United States generated 46% of global revenue in 2009, down from 56% in 1999. Europe (with
According to estimates published by the International Financial Services London, for the decade prior to the financial crisis in 2008, M&A was a primary source of investment banking revenue, often accounting for 40% of such revenue, but dropped during and after the financial crisis.[30]: 9 Equity underwriting revenue ranged from 30% to 38%, and fixed-income underwriting accounted for the remaining revenue.[30]: 9
Revenues have been affected by the introduction of new products with higher margins; however, these innovations are often copied quickly by competing banks, pushing down trading margins. For example, brokerages commissions for bond and equity trading is a commodity business, but structuring and trading derivatives have higher margins because each over-the-counter contract has to be uniquely structured and could involve complex pay-off and risk profiles. One growth area is private investment in public equity (PIPEs, otherwise known as Regulation D or Regulation S). Such transactions are privately negotiated between companies and accredited investors.
Banks also earned revenue by securitizing debt, particularly mortgage debt prior to the financial crisis. Investment banks have become concerned that lenders are securitizing in-house, driving the investment banks to pursue vertical integration by becoming lenders, which has been allowed in the United States since the repeal of the Glass–Steagall Act in 1999.[35]
Top 10 banks
According to
Rank | Company | Ticker | Fees ($bn) |
---|---|---|---|
1. | Goldman Sachs | GS | 287.1 |
2. | Morgan Stanley | MS | 252.2 |
3. | JPMorgan | JPM | 208.1 |
4. | Bank of America Merrill Lynch
|
BAC | 169.9 |
5. | Rothschild & Co | ROTH | 94.6 |
6. | Citi | C | 91.8 |
7. | Evercore | EVR | 90.3 |
8. | Credit Suisse | CS | 90.2 |
9. | Barclays | BCS | 71.7 |
10. | UBS | UBS | 65.9 |
The above list is just a ranking of the advisory arm (M&A advisory, syndicated loans, equity capital markets, and debt capital markets) of each bank and does not include the generally much larger portion of revenues from sales & trading and asset management. Mergers and acquisitions and capital markets are also often covered by The Wall Street Journal and Bloomberg.
Financial crisis of 2007–2008
The
The crisis led to questioning of the investment banking
A number of former Goldman Sachs top executives, such as
Under threat of a subpoena, Goldman Sachs revealed that it received $12.9 billion in taxpayer aid, $4.3 billion of which was then paid out to 32 entities, including many overseas banks, hedge funds, and pensions.[46] The same year it received $10 billion in aid from the government, it also paid out multimillion-dollar bonuses; the total paid in bonuses was $4.82 billion.[47][48] Similarly, Morgan Stanley received $10 billion in TARP funds and paid out $4.475 billion in bonuses.[49]
Criticisms
The investment banking industry, including boutique investment banks, have come under criticism for a variety of reasons, including perceived conflicts of interest, overly large pay packages, cartel-like or oligopolistic behavior, taking both sides in transactions, and more.[50] Investment banking has also been criticized for its opacity.[51] However, the lack of transparency inherent to the investment banking industry is largely due to the necessity to abide by the non-disclosure agreement (NDA) signed with the client. The accidental leak of confidential client data can cause a bank to incur significant monetary losses.
Conflicts of interest
Conflicts of interest may arise between different parts of a bank, creating the potential for market manipulation, according to critics. Authorities that regulate investment banking, such as the Financial Conduct Authority (FCA) in the United Kingdom and the SEC in the United States, require that banks impose a "Chinese wall" to prevent communication between investment banking on one side and equity research and trading on the other. However, critics say such a barrier does not always exist in practice. Independent advisory firms that exclusively provide corporate finance advice argue that their advice is not conflicted, unlike bulge bracket banks.
Conflicts of interest often arise in relation to investment banks' equity research units, which have long been part of the industry. A common practice is for equity analysts to initiate coverage of a company to develop relationships that lead to highly profitable investment banking business. In the 1990s, many equity researchers allegedly traded positive stock ratings for investment banking business. Alternatively, companies may threaten to divert investment banking business to competitors unless their stock was rated favorably. Laws were passed to criminalize such acts, and increased pressure from regulators and a series of lawsuits, settlements, and prosecutions curbed this business to a large extent following the 2001 stock market tumble after the dot-com bubble.
Philip Augar, author of The Greed Merchants, said in an interview that, "You cannot simultaneously serve the interest of issuer clients and investing clients. And it’s not just underwriting and sales; investment banks run proprietary trading operations that are also making a profit out of these securities."[50]
Many investment banks also own retail brokerages. During the 1990s, some retail brokerages sold consumers securities which did not meet their stated risk profile. This behavior may have led to investment banking business or even sales of surplus shares during a public offering to keep public perception of the stock favorable.
Since investment banks engage heavily in trading for their own account, there is always the temptation for them to engage in some form of front running—the illegal practice whereby a broker executes orders for their own account before filling orders previously submitted by their customers, thereby benefiting from any changes in prices induced by those orders.
Documents
Nevertheless, the controversy around investment banks intentionally underpricing IPOs for their self-interest has become a highly debated subject. The cause for concern is that the investment banks advising on the IPOs have the incentive to serve institutional investors on the buy-side, creating a valid reason for a potential conflict of interest.[54]
The post-IPO spike in the stock price of newly listed companies has only worsened the problem, with one of the leading critics being high-profile venture capital (VC) investor, Bill Gurley.[55]
Compensation
Investment banking is often criticized for the enormous pay packages awarded to those who work in the industry. According to Bloomberg Wall Street's five biggest firms paid over $3 billion to their executives from 2003 to 2008, "while they presided over the packaging and sale of loans that helped bring down the investment-banking system".[56]
The highly generous pay packages include $172 million for Merrill Lynch CEO Stanley O'Neal from 2003 to 2007, before it was bought by Bank of America in 2008, and $161 million for Bear Stearns' James Cayne before the bank collapsed and was sold to JPMorgan Chase in June 2008.[56]
Such pay arrangements have attracted the ire of Democrats and Republicans in the United States Congress, who demanded limits on executive pay in 2008 when the U.S. government was bailing out the industry with a $700 billion financial rescue package.[56]
Writing in the Global Association of Risk Professionals journal, Aaron Brown, a vice president at Morgan Stanley, says "By any standard of human fairness, of course, investment bankers make obscene amounts of money."[50]
See also
- Alternative investment
- Boutique investment bank
- Devolvement
- Independent advisory firm
- Investment Banking Exam
- List of investment banks
- Traditional investments
References
- ^ "Investment Banking Definition". Investopedia. Dotdash. 19 November 2008. Archived from the original on 21 October 2021. Retrieved 5 August 2016.
- ^ "U.S. Securities and Exchange Commission" (PDF). Archived (PDF) from the original on 2021-10-21. Retrieved 2017-09-01.
- ISBN 978-1847201072.
- ^ Wu, Wei Neng (26 February 2014). "Hub Cities — London: Why did London lose its preeminent port hub status, and how has it continued to retain its dominance in marine logistics, insurance, financing and law?". Civil Service College Singapore. Archived from the original on 8 March 2021. Retrieved 21 November 2017.
- ^ Tuch, Andrew F. "The Remaking of Wall Street" (PDF). Harvard Business Law Review. 7: 316–373. Archived (PDF) from the original on 2020-12-03. Retrieved 2019-06-19.
- ^ a b Rhee, R. J. (2010). "The Decline of Investment Banking: Preliminary Thoughts on the Evolution of the Industry 1996–2008". Journal of Business and Technology Law: 75–98. Archived from the original on 2021-11-02. Retrieved 2013-01-11.
- ^ S2CID 153324348. Archived from the original(PDF) on 2020-10-31. Retrieved 2013-01-10.
- ^ "EX-99.1". www.sec.gov. Retrieved 2024-02-28.
- ^ "SEC.gov | Going Public". www.sec.gov. Retrieved 2024-02-28.
- ^ "Front Office". Investopedia. Investopedia. Archived from the original on 8 September 2021. Retrieved 29 January 2019.
- ^ IBCA To Lead, To Follow or to Respond- An Investment Banking Strategist’s Playbook Archived 2021-04-23 at the Wayback Machine Retrieved 24 January 2020
- ^ ICAEW, April 2005 (revised January 2011 and September 2020)
- ^ "Confidential Information Memorandum (CIM) | A Detailed Guide". morganandwestfield.com. Retrieved 2024-02-28.
- ISSN 2329-9134. Archived from the originalon 2017-01-19. Retrieved 2014-11-10.
- ^ Taritsa, Lawrence (June 2020). "Everything You Need to Know About Corporate Finance". Romero Mentoring. Archived from the original on 15 September 2022. Retrieved 15 September 2022.
- ^ "What's the role of an investment bank?". Investopedia. Investopedia. Archived from the original on 29 January 2019. Retrieved 29 January 2019.
- The Financial Times. Archivedfrom the original on 8 November 2010. Retrieved 23 October 2010.
- ^ "Research Rules Frequently Asked Questions (FAQ) | FINRA.org". www.finra.org. Retrieved 2024-02-28.
- ^ "Investment Banking Interview Questions" (PDF). Wall Street Prep. Archived (PDF) from the original on 17 October 2021. Retrieved 17 December 2021.
- ^ "Risk Management Consulting | J.P. Morgan". Archived from the original on 2013-03-19. Retrieved 2013-02-23.
- ^ "J.P. Morgan | Operations – internships and graduate roles". Archived from the original on 2013-05-15. Retrieved 2013-02-23.
- ^ "J.P. Morgan | Business areas – Finance". Archived from the original on 2013-01-27. Retrieved 2013-02-23.
- ^ Barclays Risk Loan http://www.barcap.com/client-offering/investment-banking.html Archived 7 April 2013 at archive.today
- ^ "Goldman Sachs | Prime Brokerage – Risk Management and Financing". Archived from the original on 7 July 2018. Retrieved 23 February 2013.
- ^ "Goldman Sachs | Finance". Goldman Sachs. Archived from the original on 2022-02-01. Retrieved 2022-02-01.
- ^ "Merchant Banking: Past and Present". Archived from the original on 14 February 2008. Retrieved 29 January 2008.
- ^ "ABA Securities Association". July 4, 2012. Archived from the original on 2012-07-04.
- ^ Investment banking trade associations join forces in Europe Archived 2013-02-06 at the Wayback Machine. Finextra.
- ^ "History – About – AFME (Association for Financial Markets in Europe)". Archived from the original on 1 August 2016. Retrieved 16 September 2016.
- ^ a b c d International Financial Services London. (2010). BANKING City Business Series
- ^ (15 September 2012). Dream turns to nightmare. The Economist.
- ^ McKinsey & Company and the New York City Economic Development Corporation. "Sustaining New York's and the US' Global Financial Services Leadership" (PDF). City of New York. Archived (PDF) from the original on 16 June 2015. Retrieved 8 December 2018.
- ISBN 978-0-19-965862-6. Archivedfrom the original on 25 December 2018. Retrieved 8 December 2018.
- ^ "The history of investment banking". www.financeinstitute.com. 10 September 2015. Archived from the original on 9 December 2018. Retrieved 8 December 2018.
- ^ Rickards, James (2012). "Repeal of Glass-Steagall Caused the Financial Crisis". U.S. News & World Report. Archived from the original on 7 April 2014. Retrieved 1 April 2014.
In fact, the financial crisis might not have happened at all but for the 1999 repeal of the Glass–Steagall law that separated commercial and investment banking for seven decades.
- ^ "Investment Banking Scorecard". The Wall Street Journal. Archived from the original on 26 June 2020. Retrieved 4 July 2020.
- ^ [1] Archived 2018-09-03 at the Wayback Machine statista Retrieved 17 October 2017
- ^ The End of Wall Street Archived 2017-07-09 at the Wayback Machine. Wall Street Journal.
- ^ Erin Nothwehrm "Emergency Economic Stabilization Act of 2008" Archived 23 November 2012 at the Wayback Machine University of Iowa (December 2008). Retrieved 1 June 2012
- ^ "The true cost of the bank bailout" Archived 2020-01-11 at the Wayback Machine PBS/WNET "Need to Know" (3 September 2010). Retrieved 7 March 2011
- ^ Samuel Sherraden, "Banks use TARP funds to boost lending – NOT!" Archived 17 July 2011 at the Wayback Machine The Washington Note (20 July 2009). Retrieved 7 March 2011
- ^ Matthews, Steve; Chen, Vivien Lou (26 April 2010). "Fed May Keep Rates Low as Tight Credit Impedes Small Businesses". Bloomberg Businessweek. Archived from the original on 28 April 2010.
- ^ Jagger, Suzy (18 January 2016). "End of the Wall Street investment bank". The Times. London. Archived from the original on 2 June 2015. Retrieved 7 March 2011.
- ^ a b c Matt Taibbi, "The Great American Bubble Machine" Archived 2018-07-01 at the Wayback Machine Rolling Stone magazine (5 April 2010). Retrieved 7 March 2011
- ^ Edward Niedermeyer, "TARP Oversight Report: Bailout Goals Conflict, Moral Hazard Alive And Well" Archived 2011-01-17 at the Wayback Machine (13 January 2011). Retrieved 7 March 2011
- ^ Karen Mracek and Thomas Beaumont, "Goldman reveals where bailout cash went" Archived 2012-07-12 at the Wayback Machine The Des Moines Register (26 July 2010). Retrieved 7 March 2011
- ^ Stephen Grocer, "Wall Street Compensation–’No Clear Rhyme or Reason’" Archived 2020-08-01 at the Wayback Machine The Wall Street Journal Blogs (30 July 2009). Retrieved 7 March 2011
- ^ "Goldman Sachs: The Cuomo Report’s Bonus Breakdown" Archived 2017-07-10 at the Wayback Machine The Wall Street Journal Blogs (30 July 2009). Retrieved 7 March 2011
- ^ "Morgan Stanley: The Cuomo Report’s Bonus Breakdown" Archived 2017-07-10 at the Wayback Machine The Wall Street Journal Blogs (30 July 2009). Retrieved 7 March 2011
- ^ a b c Brown, Aaron (March–April 2005). "Review of "The Greed Merchants: How Investment Banks Played the Free Market Game" by Philip Augar, HarperCollins, April 2005". Global Association of Risk Professionals (23).
- ^ William D. Cohan, author of House of Cards: How Wall St. Bankers Broke Capitalism, speaking on BBC Radio 5 Live, Up All Night, 13 April 2011
- New York Times. Archivedfrom the original on 14 March 2013. Retrieved 14 March 2013.
- ^ Salmon, Felix (11 March 2013). "Where banks really make money on IPOs". Reuters. Archived from the original on 11 March 2013. Retrieved 14 March 2013.
- ISSN 0022-1090.
- ^ "Venture capitalist Bill Gurley on start-ups and economic uncertainty | McKinsey". www.mckinsey.com. Retrieved 2024-02-28.
- ^ a b c Tom Randall and Jamie McGee, "Wall Street Executives Made $3 Billion Before Crisis (Update1)" Archived 2015-09-24 at the Wayback Machine, Bloomberg, 26 September 2008.
Further reading
- Fleuriet Michel Investment Banking Explained: An Insider's Guide to the Industry ISBN 978-0-07-149733-6.
- Cartwright, Susan; Schoenberg, Richard (2006). "Thirty Years of Mergers and Acquisitions Research: Recent Advances and Future Opportunities" (PDF). S2CID 154230290.
- Harwood, I. A. (2006). "Confidentiality constraints within mergers and acquisitions: gaining insights through a 'bubble' metaphor". British Journal of Management. 17 (4): 347–359. S2CID 154600685.
- Rosenbaum, Joshua; Joshua Pearl (2009). Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions. Hoboken, NJ: ISBN 978-0-470-44220-3.
- Straub, Thomas (2007). Reasons for Frequent Failure in Mergers and Acquisitions: A Comprehensive Analysis. Wiesbaden: Deutscher Universitätsverlag. ISBN 978-3-8350-0844-1.
- Scott, Andy (2008). China Briefing: Mergers and Acquisitions in China (2nd ed.). ISBN 978-3642149184.