Mergers and acquisitions are major events in the life of an organization. The shell deal also provides a big lift to the other firms that worked on the transaction, bank of america merrill lynch and the british boutique robey warshaw. Read the case, bank of americas acquisition of merrill lynch on page 702718. Released today, a new study finds that 56 percent of employees are stressed about their financial situation. The highprofile deal is a boost to an otherwise subdued year for investment banking revenues within europes consumer and retail sector. As far back as 1960, 70% of merrill lynchs revenue was derived from. Bank of america merrill lynch has signed on with a quant firm and it shows where wall street is headed. Merrill lynch was not only bullish on america, it was a big reason why so many average. Global transaction services analyst bank of america. Bofa securities, previously bank of america merrill lynch baml, is an american multinational investment bank division under the auspices of bank of america. It is not to be confused with merrill, the wealth management division of bank of america. It was formed through the combination of the corporate and investment banking.
David rofsky director, senior vice president senior. Bank of americas acquisition of merrill lynch prezi. Merrill lynchbank of america merger essay 1992 words. The case study analyzes the controversial events occurring between the merger signing and closing. Bank of america has resolved one of the largest and most embarrassing pieces of litigation related to its merger with merrill lynch in 2008. Kenneth lewis, ceo of bank of america, testified about the events surrounding bank of americas acquisition of merrill lynch and its. Utilitarianism, bank of america, merrill lynch pages. Bankers at goldman sachs and jpmorgan are advising michael kors on the acquisition, with bank of america merrill lynch and citigroup working with jimmy choo. Under terms of the transaction, bank of america would exchange. In late 2008, bank of america and merrill lynch were in negotiations for a business deal. Secondhand college book trading platform for turkish university students. Lending and other commercial banking activities are performed globally by banking affiliates of bac and in australia by bank of america, n.
As you know, the period encompassing bank of americas decision to acquire merrill lynch through the consummation of the merger was one of extreme stress in financial markets. Hailed as a brilliant move in september, bank of americas purchase of merrill lynch is now widely regarded as a. In this case study, we are going to highlight the valuation and acquisition process of. In defense of the bank of america merrill lynch deal. Mergers and acquisitions by bank of america springerlink. Maths, not history, drives mergers and acquisitions. Bank of america merrill lynch study reveals more than half. That is the comparison being drawn by dealmakers in the towering offices of bulge bracket banks, and at their boutique rivals, on wall street, in the city of london and in hong kong. The acquisition is expected to be accretive to earnings by 2010. London, july 3 reuters bank of america merrill lynch has appointed anya weaving as managing director of the banks global natural resources unit, according to a memo seen by reuters on monday. Bank of america merrill lynch is the marketing name for the global banking and global markets businesses of bank of america corporation bac.
How merrill lynch became bank of americas unlikely savior while bank of america is often cast as a white knight when it comes to the financial crisis. I have come to appreciate that while the technical aspects, such as valuation and contracting are vital, they are insufficient. Henman articulate what it takes to make deals worka holistic view and tolerance for ambiguity. That monetary award ranks it as one of the largest settlements in a securities classaction case, behind the. Leveraging strategic advice bank of america merrill lynch. The latest bank of america merrill lynch workplace benefits report reveals that among those who are stressed, 53 percent say it interferes with their ability to focus and be productive at work. A rich day for banks advising on big merger deals the. A total of 1 acquisition came from private equity firms. It was subsequently approved by the shareholders of bank of america and merrill lynch on december 5, 2008. The trio of men at the top of bank of america merrill lynch s mergers and acquisitions business have very different backgrounds. For bank of america, more trouble from merrill lynch. Case study of the bank of america and merrill lynch. Bank of america is still trying to get its arms around the big acquisitions it did amid the financial crisis.
Case study of the bank of america and merrill lynch merger. The merger made the company the largest securities firm in the world, with. Bank of america merrill lynch is the corporate and investment banking division of bank of america. Bank of america was going to buy merrill lynch for one of the largest bank mergers and acquisitions in the world. Bank of america ended up releasing its 2008 financial results 15 days later.
Breakdown of merrill lynch income statement and balance sheet are available on the appendix. Bank of america finishes merger of merrill lynch into. Bank of america mergers and acquisitions summary mergr. A pitch book of financial information is generated to market the bank to a. How merrill lynch became bank of americas unlikely savior.
The study also found that employers can play an important role in improving the financial. The bank may combine its merrill lynch subsidiary with the parent company as part of an effort to simplify its organization and reduce costs, merrill lynch said in a regulatory filing on aug. This case also compares the performance of the two banks, bank of america and wells fargo, in terms of how corporate governance had an impact on their stock. On saturday the same week, john thain, chairman and ceo of merrill lynch, contacted ken lewis, chairman and ceo of bank of america. It provides services in mergers and acquisitions, equity and debt capital markets, lending, trading, risk management, research, and liquidity and payments management. Shareholder profit, public good, and the hobsons choice during a national crisis, 17 geo. The deal with fleetboston consolidated bank of america s position as uss second largest bank ranked by assets behind citigroup. Vice president, emea mergers and acquisitions at bank of america. Bank of america merrill lynch acquisition during global financial. See the complete profile on linkedin and discover davids. Selim guven vice president bank of america merrill lynch.
Maths, not history, drives mergers and acquisitions financial times. Bank of america merrill lynchlondon school of economics and political science. Three bank of america executives testified about events surrounding bank of americas acquisition of merrill lynch and the receipt of federal financial assistance. The merger between merrill lynch and bank of america was sold to us as a marriage made in heaven that would save the financial system.
Bank of america acquired merrill lynch in late 2008 during the financial crisis. Bank of america merrill lynch sees a possibility of 50bps rate cut in october meet 14 sep, 2019, 07. As the world evolves, we help you balance your daily financial needs and plan for your longterm goals. Movesbank of america merrill lynch hires new global. The acquisition was scheduled to be closed on january 1, 2009. Bank of america takeover to end independent merrill reuters. This is a case study of the bank of america and merrill lynch merger.
The trio of men at the top of bank of america merrill lynchs mergers and acquisitions business have very different backgrounds. Bank of america contracts with manoj narangs mana ahead. Considering merrill lynch exposure to mbs and other derivatives, significant decline in their value could easily wiped out merrills equity look at appendix 2. Maurizio maddaloni associate bank of america merrill lynch. Invision employees share their remote work secrets. Merrill lynch, which has absorbed bofas securities unit, is now the most profitable business unit in bank of america, according to creditsights. On the surface, bank of america thought the merger was a good idea and a good business deal to pursue.
Create a strategy to maximize your business valuation at bank of america merrill lynch. Merger of merrill lynch ang bank of america by natalia. Bank of america buys merrill lynch creating unique. It is based on the article, fiduciary exemption for public necessity. An investment bank is a financial services company or corporate division that engages in. Along with bofa securities, the investment banking arm, both firms engage in. David fishman director, technology, media and telecom.
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