Daiwa Securities Group Inc (8601.T) plans to hire more bankers and acquire boutique businesses to increase M&A consulting income by 50% in eight years to grow its US footprint.
On Wednesday, the second-largest Japanese brokerage and investment bank expected global M&A revenue of at least 70 billion yen ($518.33 million) in March 2031, up from 46.7 billion in the previous year.
“The M&A business is where we can expect big growth without using much of our assets,” CEO Seiji Nakata told a strategy briefing on Wednesday.
“We plan to allocate our resources vigorously to expand mainly in the United States, potentially buying boutique M&A firms,” he said, focusing on infrastructure, industrials, consumers, and health care.
Daiwa expects to hire 900 M&A bankers in eight years, up from 650.
It has focused on M&A advising for mid-cap deals between 50 billion yen and 100 billion yen, a category less affected by inflation.
Mizuho Financial Group Inc (8411.T) announced this month that it would buy Greenhill & Co Inc GHL.N for $550 million, including debt, to increase its part of the world’s largest investment-banking fee pool.
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