European M&A: End of year report and Salary Review 2017, UK: https://lnkd.in/gtpW9jD #EnablingExceptionalCareers

1. INDUSTRY INSIGHT
EUROPEAN M&A:
END OFYEAR REPORT
& SALARY SURVEY 2017

2. In comparison to 2015, which saw M&A hit levels
not seen since 2007, 2016 was a much more
challenging year for M&A. The UK referendum
caused huge amounts of uncertainty in the first
half of the year as dealmakers targeting the UK
were reluctant to come to market. This led to a
slow-down in M&A activity in the first half of the
year with 3,110 deals worth US $342.8bn; both
the lowest H1 value since 2013. The vote itself
caused shockwaves in the market, reducing activity
further as many dealmakers looked to postpone
or cancel proposed deals in order to wait for some
of the immediate turmoil to settle down. Moving
into the last part of the year however, deal activity
has rebounded as with the decision now known,
dealmakers looked to make up for lost time.
The German market on the other hand saw an
increased level of activity in 2016 following a drop
in 2015 as buyers, particularly Chinese, looked to
acquire good quality German assets. Dealmakers
focussed particularly on picking up industrial
technologies which led to the Industrials and
Chemicals sector having the largest share of any
sector in the German market. Cross border activity
was up in Germany as well, as German investors
looked to invest large sums into US assets with
the $66bn potential acquisition of Monsanto by
Bayer being the largest outbound acquisition by a
German Company on record.
INTRODUCTION

3. Industry Insight | Enabling Exceptional Careers
Analyst - Associate
As with deals, the level of hiring has been down
in 2016, however, there has been a continued
demand to hire Analysts and Associates as there
is still a shortage of candidates at this level. The
Associate level has been of particular interest due
to lack of hiring in the years following the financial
crash and the usual loss of candidates to the buy-
side has led to a number of different banks and
boutiques aggressively hiring at this level.
Associates from larger banks have been making the
shift to boutiques this year in order to move to a
more lean structure where they will gain increased
exposure to deals and more responsibility.
Candidates from the Big 4 Accountancy firms have
been the other big movers in 2016 and have been
in high demand from both banks and boutiques.
These candidates, from lead advisory teams and
transaction services teams, are well trained, have
good technical skills and are keen to move onto
institutions that are more specialised in Investment
Banking to further their careers. To entice and
retain staff in the current climate, base salaries for
junior candidates have continued to rise.
VP - MD
Hiring at theVP and Director Level meanwhile, has
been more sporadic as only newer MA teams
have looked to hire more experienced staff to
lead execution and assist with origination. Due to
‘juniorisation’and also being well staffed at this level,
established banks have shied away from hiring at this
level unless either looking rebuild underperforming
teams or establishing altogether new teams.
The MD / Partner level has still attracted a strong
level of interest, especially at the boutiques as
strong originators are welcomed in order to
increase deal flow. Furthermore we have seen a
number of different boutiques look to diversify and
branch out into different sectors, such as Stephens
building out a FIG team.
HIRING TRENDS - SENIORITY LEVEL

4. HIRING TRENDS - MARKET TRENDS
As with last year,TMT has been one of the busiest
sectors and as result has been one that has seen the
most growth. SpecialistTMT boutiques such as GP
Bullhound, ARMA Partners, Mooreland Partners
and NOR Capital have all looked to add to their
established teams in London, primarily targeting
Associates.
Despite the Brexit vote, other European and
US boutiques have looked to build out offices in
London – the US boutique AGC Partners has
opened an office in London by hiring Markus
Salolainen from Growth Point Partners.The French
boutique Clipperton has opened an office and is
in the process of growing while another French
boutique, Bryan Garnier, has looked to establish a
TMT team as well.
A number of firms have expanded inTMT in Europe
as well with GP Bullhound establishing an office
in Pairs, Clipperton adding a VP in Germany and
AXCIT Partners recently hiring Mathis Wilke as an
Executive Director from IKB to further bolster its
TMT business.
Healthcare and Consumer teams have also been
busy this year with a number of different teams
hiring. Rothschild has been a big hirer in Healthcare
this year while Oppenheimer has established
a Consumer team, hiring Daniel Krsicka from
Houlihan Lokey as an Executive Director.
Industrials has seen growth with Evercore building
out its team further, the Valence group adding in
Chemicals. Infrastructure, Power, Renewables and
FIG teams have also seen small levels of hiring,
however, Natural Resources has had another
difficult year with a number of banks, including
Nomura and Societe Generale, letting go entire
teams.
Despite this hiring, the larger Investment Banks
have been cutting large portions of their MA
teams, with Nomura letting go large numbers in
TMT, FIG and Consumer, Morgan Stanley in Real
Estate, Credit Suisse in Industrials and Consumer
and RBC across their entire IBD business.
Even though Associates have been the most
desired hires of 2016, conversely the cuts we have
seen have primarily been at this level as banks look
to upgrade their current teams.
As we approach bonus season it is likely to be a tale
of two halves.Top US banks (GS,MS,JPM) have had
a strong year in 2016, particularly post Brexit, and
have seen a sharp uptick in deal flow in comparison
to the year prior. This has led to much higher
optimism of bonus levels in comparison to last year.
On the contrary employees at European banks are
generally less positive about their expected figures
as a number are recovering from large fines whilst
other banks are still challenging to compete with
the US players.

5. SALARY REVIEW

6. www.selbyjennings.com | enquiries@selbyjennings.com Industry Insight | Enabling Exceptional Careers
£0
£10,000
£20,000
£30,000
£40,000
£50,000
£60,000
£70,000
US/Top European
Banks
Tier 2 Banks Boutiques
Analyst 1 Average Salary
Analyst 1 Average Bonus
Analyst 2 Average Salary
Analyst 2 Average Bonus
Analyst 3 Average Salary
Analyst 3 Average Bonus
ANALYSTS
Title
US/Top European Banks Tier 2 Banks Boutiques
Salary Range
(£)
Bonus
(%)
Mean Total
Comp
Salary Range
(£)
Bonus
(%)
Mean Total
Comp
Salary Range (£) Bonus
(%)
Mean Total
Comp
Analyst 1 £50,000 - £55,000 20% - 70% £76,500 £45,000 - £50,000 20% - 50% £62,500 £35,000 - £50,000 20% - 50% £57,000
Analyst 2 £55,000 - £60,000 40% - 80% £93,500 £50,000 - £55,000 30% - 60% £77,000 £45,000 - £55,000 30% - 60% £72,500
Analyst 3 £60,000 - £65,000 60% - 100% £112,500 £55,000 - £60,000 40% - 70% £97,500 £50,000 - £60,000 30% - 85% £91,000

7. www.selbyjennings.com | enquiries@selbyjennings.com Industry Insight | Enabling Exceptional Careers
Banks
£0
£20,000
£40,000
£60,000
£80,000
£100,000
£120,000
US/Top European
Banks
Tier 2 Banks Boutiques
Associate 0* Average Salary
Associate 0* Average Bonus
Associate 1 Average Salary
Associate 1 Average Bonus
Associate 2 Average Salary
Associate 2 Average Bonus
Associate 3 Average Salary
Associate 3 Average Bonus
Associate 4** Average Salary
Associate 4** Average Bonus
ASSOCIATES
Title
US/Top European Banks Tier 2 Banks Boutiques
Salary Range
(£)
Bonus
(%)
Mean Total
Comp
Salary Range
(£)
Bonus
(%)
Mean Total
Comp
Salary
Range (£)
Bonus
(%)
Mean Total
Comp
Associate 0* £75,000 - £80,000 Stub bonus £97,500 £65,000 - £75,000 Stub bonus £84,500 N/A
Associate 1 £80,000 - £90,000 30% - 90% £145,000 £65,000 - £90,000 30% - 70% £122,500 £60,000 - £90,000 40% - 110% £130,000
Associate 2 £100,000 - £110,000 40% - 100% £182,000 £80,000 - £105,000 30% - 80% £159,500 £70,000 - £95,000 50% - 120% £152,500
Associate 3 £110,000 - £120,000 40% - 100% £200,000 £90,000 - £110,000 30% - 100% £175,000 £80,000 - £105,000 50% - 120% £172,500
Associate 4** N/A £100,000 - £110,000 30% - 100% £190,000 £90,000 - £115,000 50% - 120% £192,500
*Associate 0 is not at all banks. **Associate 4 not at all banks

8. www.selbyjennings.com | enquiries@selbyjennings.com Industry Insight | Enabling Exceptional Careers
£0
£20,000
£40,000
£60,000
£80,000
£120,000
£140,000
£160,000
£180,000
US/Top European
Banks
Tier 2 Banks Boutiques
Vice President 1 Average Salary
Vice President 1 Average Bonus
Vice President 2 Average Salary£100,000
Vice President 2 Average Bonus
Vice President 3 Average Salary
Vice President 3 Average Bonus
VICE PRESIDENTS
Title
US/Top European Banks Tier 2 Banks Boutiques
Salary Range
(£)
Bonus
(%)
Mean Total
Comp
Salary Range
(£)
Bonus
(%)
Mean Total
Comp
Salary
Range (£)
Bonus
(%)
Mean Total
Comp
Vice President 1 £130,000 - £150,000 60% - 110% £255,000 £110,000 - £130,000 50% - 100% £220,000 £85,000 - £110,000 50% - 150% £195,000
Vice President 2 £140,000 - £155,000 70% - 110% £277,500 £115,000 - £145,000 60% - 100% £245,000 £95,000 - £125,000 60% - 150% £220,000
Vice President 3 £145,000 - £170,000 70% - 130% £307,500 £125,000 - £155,000 60% - 110% £265,000 £105,000 - £140,000 80% - 150%+ £247,500

9. 2017 will be an interesting year for European, and
more specifically UK MA that will be impacted a
lot by political activity.An active MA market is very
much linked to confidence so the way in which the
UK handle the exit from Europe will have a direct
impact on deal flow.Whilst this creates uncertainty
it does also create opportunity as a number of UK
companies remain attractive for purchase,especially
from international buyers given the exchange rates.
Over the last few months a number of clients have
said they expect cross border MA in to Europe
to increase across 2017, andTMT and IP to be high
on a lot of people’s targets. This is demonstrated
with the following deals happening in the TMT
sector, such as; Microsoft LinkedIn, the Verizon
takeover ofYahoo, and 21st Century Fox acquiring
the remaining stack in Sky.
Market optimism has increased considerably
since the initial pessimism following the Brexit
vote. Clients still remain cautious of where the
opportunities will arise in 2017 and many expect
it to be a challenging year, but we continue to see
appetite to hire and are confident this will remain.
Please note that the above salary surveys cover a significant proportion of the market, within vastly different companies; taking into
account different levels of seniority. If you would like to learn more about what you should be earning or paying, specific to your
individual circumstances, please do get in touch. Our Consultants will be happy to help: ibdcb@selbyjennings.com.
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INDUSTRY INSIGHT