Splitting conglomerates into multiple independent companies is the emerging trend as many companies have announced a break up, or a plan to break up in recent times. Everytime a deal is made and a company splits into separate multiple independent companies, investment bankers make huge profit.
Investment banks are believed to have made over $4.5 billion for advising on company splits since 2011.
Companies that spent hundreds of millions of dollars as fees to investment bankers to facilitate mergers and acquisition deals in times past, are now paying huge sums to reverse it.
Some 42 spin-offs collectively worth over $200 billion have been announced globally this year alone, up from 38 spin-offs worth roughly $90 billion in 2020.
In the case of GE, their financial advisors which includes Evercore Inc (EVR.N), PJT Partners Inc (PJT.N), Bank of America Corp (BAC.N) and Goldman Sachs each stand to collect tens of millions of dollars for their advisory roles in the company’s break-up last week.
