Skip to main content

Goldman To Target Plebes

  • Author:
  • Updated:

Goldman Sachs has announced that it will focus on doing more deals with “middle market” companies ($500 million to $2 billion market value), meaning peasants, meaning we’re not happy. We love Goldman because they’re supposed to be above such pedestrian endeavors. Lloyd’s already admitted that these firms are “an area historically we do not cover very well,” so why start now? (Allegedly because the companies “comprise the bulk of the U.S. economy and a lucrative source of new business” and everyone else—Citigroup, Merrill Lynch, and Bank of America—is doing it. To which we say, a. Do we really want to be following instead of leading and b. Following what, a motley crew of people who don’t appreciate that the $Honey needs to be finessed, even at the expense of company dollars; employ sexual predators; and are Bank of America, respectively?)
According to Mark Brady, head of M&A at Chicago bank William Blair & Co., “You’re seeing more and more of the New York firms opening up mid-market practices” because there’s been a lot of activity in this sector, high margins, and room for growth. Reuters seems to think we’ll be mollified by the news that Goldman’s entry could mean a god-among-men situation for mid-market specialists like Jefferies, Piper Jaffray Cos. and Houlihan Lokey Howard and Zukin, (which have done well for themselves due to a lack of top banks in the field) but Reuters thinks wrong. We’re supposed to get excited about the prospect of beating the colorblind at Uno? Thanks but no thanks. Lloyd maybe you should take some Nyquil and sleep on this?
Goldman seeks more middle-market deals [Reuters]