Published: September 19, 2011
Bank announces new head of European investment banking to drive M&A work.
David Silver allows himself a laugh as he describes investment bank Baird’s success in attracting talent during the downturn. “It sounds slightly dull, but our stability and success has meant a lot of people are interested in joining us at a time when there isn’t a lot of stability elsewhere,” he says. Dull or not, in today’s turmoil, stability counts for a lot – for employees and customers.
Silver will now take a more hands-on role in ensuring Baird’s steadiness. A 14-year employee of the bank, he has just been named its next head of European investment banking, a role he’ll take from John Fordham in January when Fordham becomes chairman of Baird’s international division. Silver’s promotion will keep him busy – he’ll also retain his current post as head of Baird’s business services banking practice in Europe, continuing his London-based work advising dealmakers during mid-market M&A transactions.
Even in the midst of the economic slump, US-headquartered Baird has bolstered its business here. Since 2005 it has doubled the number of bankers it employs and its number of offices. Deal flow has also been increasing. In 2010, the number of M&A deals Baird worked on was up by more than 170% year-on-year to 51, with a total value of more than US$26bn. By September this year, the bank had already worked on 48 transactions.
Certainly uncertain
Silver, who trained as a corporate lawyer and helped to found Baird’s M&A practice in Europe, is excited about his new role. The business has “a fantastic momentum”, he says: 2010 looks set to be a record year for its investment banking revenues in Europe, and his team will hire new talent under his leadership. Its sector focus on consumer industrials and business services will remain, but he’s open to doing deals anywhere – more than a third of Baird’s M&A deals in the past five years have involved a cross-border element. In January, for example, the bank advised Velosi, a Malaysian company that provides inspection services to the oil and gas industry, on its sale to Spanish rival Applus.
Silver may promise business as usual, but the M&A market is changing. Fewer companies are being sold in large auctions, he notes – instead, deals are more likely to be struck during targeted discussions between buyers and sellers. “A lot of the [buyers] who are tracking businesses have been doing so for some time, whether they’re private equity or trade, and I think that will continue,” he says. “In an environment where there is uncertainty, having a history with a potential target is valuable.”
Yet notwithstanding the market malaise of late summer, Silver sees an “appetite to invest” among potential acquirers, provided that the right targets are available.
“The overall uncertainty has gone up a notch,” he says. “I think people had got used to the levels of uncertainty we’d been operating in for the last few years. The last few weeks have bought an added dimension. But a lot of our clients continue to perform very strongly and if they’re good businesses, needed in their niches, then there’s a strategic rationale for potential buyers to pursue them aggressively.”