Thomas Simpson

What is an investment bank worth? This deal slipped a little under my radar but I noticed it when reviewing last month's transactions on the platform and it sprung up in The Times too. Evercore has paid £146 million for Robey Warshaw, a boutique investment bank that definitely falls into the 'elephant hunter' category, advising on monster deals that are usually the preserve of the bulge brackets (Goldman Sachs, J.P. Morgan, Morgan Stanley, Bank of America Merrill Lynch, Deutsche Bank, UBS, Citi and Credit Suisse). Recent mandates include the disposal of Reckitt Benckiser's Essential Home business to Advent for $4.8 billion and the acquisition of Keywords Studios by EQT Group for $2.8 billion. As you would expect with a low volume operator in a cyclical sector, revenues fluctuate but most of what does come in accrues to the partners (there were 5, including George Osborne). Last year £86 million in revenue translated into profit before drawings of £70m (actual drawings in the year totalled £43m). The previous year the equivalent numbers were £46m (revenue), £26m (profit) and £25m (drawings). Definitely not shabby. Article below (ignore the huge fish, it's not relevant). #corporatefinance #mergersandacquisitions

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💼 What type of university students do investment banks hire? Let’s break it down 👇 1️⃣ **Extremely smart** – Maybe you’re Oxbridge. Strong communicator, analytical, numerate. But no technicals. 📌 Truth: Bigger Investment banks are willing to spend time and money to hire you. 2️⃣ **Nepotism hire** – 📌 Truth: The less said, the better. 3️⃣ Above average: Good mix of quant, comms and commercial thinking. 📌 Truth: But here’s what sets you apart: you’ve nailed your technicals. You’re not dead weight. You’re deal-ready. 4️⃣ Average student – Despite being average at university you are street smart and sharp. 📌 Truth: You know your DCFs, LBOs, SOTP. You’ve studied the real thing. When the interview comes, you’re the dark horse they remember. 5️⃣ Weak academic record– 📌 Truth: Here’s the truth: If you’re from a Tier 4 or lower university with poor academics, you’ll almost never make it — unless you can prove you’re the exception. 🚨 You’re expecting the bank to train you. That might work at a bulge bracket — they spend millions doing just that. But boutique banks don’t have the time or money to carry you. 👉 No matter what type of students you are having strong technical knowledge gives you a fighting chance. #InvestmentBanking #CityInvestmentTraining

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Let me make it clear — you will not automatically pay inheritance tax on your pension just because you die. Here’s when it does become an issue: - From April 2027 onwards - You still have pension funds remaining when you die - You don’t have a spouse, or the pension goes to non-spouse beneficiaries - Your estate exceeds the inheritance tax threshold And income tax comes into the mix to when: - You die after the age of 75 - And your beneficiaries draw from the pension and pay income tax on it Now for the numbers, in MOST cases: - If you're single, have kids, and your total estate (including a main residence and your pension) is under £500,000 — there’s no inheritance tax to pay - If you’re married or in a civil partnership and everything gets left to the other on first death, then to your kids, you can pass on up to £1 million IHT-free - Only the amount above those thresholds faces 40% IHT - And if death was after age 75, when your beneficiaries access the pension, they’ll pay income tax at their rate — possibly up to 45% That’s how the total tax can hit 65% on the excess — but most people aren’t in that position. So no, your whole pension won’t be wiped out. But the real damage isn’t the tax itself, it’s the confusion. Scary headlines will do far more harm than the policy ever could. And once people lose confidence in pensions, we all lose.

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The reaction to my last post on pensions and inheritance tax was huge. One thing’s clear - most people had no idea their pension could face a 40% hit when they pass away. From 2027, any unused pension will be added to your estate for IHT purposes. It’s not just a problem for the “wealthy” - a decent pension and the family home can easily push you over the threshold. 💷 That could mean six-figure sums wiped from the inheritance you planned for your family and in some cases, beneficiaries could face income tax on what’s left, creating a double tax hit. The good news? There are ways to reduce the risk - from how and when you draw your pension, to the structures you use to pass wealth on. The right strategy depends on you - your circumstances, your income needs, and your family goals. The danger is doing nothing. The earlier you plan, the more options you have.

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