Partly true, of course, but the infrastructure behind the larger banks has pushed fundraising and M&A activity to unprecedented volumes. Apart from market forces, deal velocity has become crucial to cover these overheads — as has the need to report revenue growth quarter-over-quarter.

So, what has happened to the quality of deals on a post-transaction basis? Have some prospered? Was value really created years after a deal had been done?

Fortman Cline Capital Markets Ltd (FCCM), a boutique advisory firm covering Southeast Asia, has decided to pursue a low-volume, high-margin approach.

It has established a management consultancy to help clients prepare for sale or assist clients with integration and strategy implementation once a deal is consummated. In other cases, it has advised clients on strategy and internal restructuring before a sale is finalized. Engaging industry professionals in key verticals such as healthcare, consumer businesses, and infrastructure services has allowed FCCM to perform well in a very competitive environment. It highlighted the firm’s strategic and commercial expertise and took it far beyond the role of ordinary financial advisors.

It has established a management consultancy to help clients prepare for sale or assist clients with integration and strategy implementation once a deal is consummated. In other cases, it has advised clients on strategy and internal restructuring before a sale is finalized. Engaging industry professionals in key verticals such as healthcare, consumer businesses, and infrastructure services has allowed FCCM to perform well in a very competitive environment. It highlighted the firm’s strategic and commercial expertise and took it far beyond the role of ordinary financial advisors.

“Having meaningful dialogues with clients over a company’s lifecycle is very important,” says Daniel Ibasco, FCCM’s CEO and co-founder. “This develops customer loyalty, and annuity-like revenue streams vis-à-vis a transaction-oriented approach to business.” Taking a holistic approach to clients’ individual situations has improved the quality of deal execution. A focused strategy on these verticals also creates discipline and focus for originating business.

Ibasco says we need to understand “the ecosystem, the key players, (and) the unmet nets in the sector” when originating transactions or mandates.

This article appeared on cfi.co Summer 2023 edition.