Assessing the Financial Advisor Roles in the Raytheon and UTC Merger

You likely heard the early June news about the merger of equals between Raytheon and UTC.  The new company will be called Raytheon Technologies and the deal is expected to close in the first half of 2020.  I know many Bentley students are interested in Mergers & Acquisitions (M&A) and by looking closely at this deal, you can learn a little more about the role that investment banks play as financial advisors in transactions such as this one.

There are several banks that are playing a role in this deal.  Citigroup Global Markets Inc. is serving as the financial advisor to Raytheon, while Morgan Stanley & Co. LLC, Evercore, and Goldman Sachs & Co. LLC are acting as financial advisors to United Technologies.  In addition, RBC Capital Markets LLC provided a fairness opinion, which is a professional opinion (provided by an investment bank) about whether the price offered in a merger or acquisition is reasonable.  Each of these banks typically interact and partner with Corporate Strategy & Development groups on the client side (in this case, Raytheon and UTC).

As you can see, investment banks play a key role for both parties involved in a strategic transaction and with larger transactions, there can sometimes be several banks involved.


By Brian Moccio
Brian Moccio Associate Director, Undergraduate Career Development Center, Pulsifer Career Development Center