UBS has whittled down its shortlist to 4 administration consultants to advise on its integration of rival Credit score Suisse, in what is anticipated to be some of the profitable monetary providers advisory contracts in recent times.
Swiss financial institution UBS is ready to determine whether or not to award the contract to Bain & Firm, Boston Consulting Group, McKinsey or Oliver Wyman within the coming days, in line with individuals concerned within the course of. Smaller contracts may very well be awarded at later dates for extra specialist work, mentioned the identical individuals who warned UBS may determine to reopen the method.
UBS executives invited bids from administration consultants within the days following its settlement to rescue Credit score Suisse in a historic $3.25bn deal that was orchestrated by Swiss authorities.
The duty of bringing collectively for the primary time two world systemically necessary monetary establishments is anticipated to take a number of years and be fiendishly difficult.
The mixed group can have 120,000 workers globally, however tens of hundreds of job cuts are anticipated.
This week, UBS chair Colm Kelleher changed chief govt Ralph Hamers together with his predecessor Sergio Ermotti in recognition of the size of the problem of constructing the transaction a hit.
“That is the most important single monetary transaction since 2008,” Kelleher advised reporters. “That brings with it important execution threat.”
Ermotti, who formally begins on Wednesday, is anticipated to have a say on which marketing consultant is chosen, although the combination course of is being led by chief info and digital officer Mike Dargan.
Claiming the contract might be a boon for the successful bidder, at a time when banks are typically chopping again on their spending on outdoors consultants.
Final yr, UBS focused lowering its spending on exterior advisers as a part of a pre-takeover drive to chop $1bn of prices by the tip of this yr.
In recent times, UBS has employed McKinsey to assist Hamers develop his technique for the financial institution, which was unveiled final yr, and to implement an agile working technique, which is aimed toward dashing up decision-making. Some senior bankers have expressed concern about UBS creating an over-reliance on the agency.
Equally, the financial institution used consultants from Oliver Wyman to advise on its threat administration operations and BCG for some smaller tasks, in line with individuals accustomed to inner workings.
Credit score Suisse had additionally been trying to cut back its use of exterior advisers, which included a plan to halve spending on consultants final yr. It diminished its exterior marketing consultant headcount by a fifth within the ultimate quarter of 2022. It relied on recommendation from McKinsey for its two current restructuring plans — one below former chair António Horta-Osório and the opposite from final yr that aimed toward radically reforming the enterprise.
As a part of the accompanying cost-cutting plans, Credit score Suisse sought recommendation from Oliver Wyman and BCG, whereas Deloitte supplied enter on the financial institution’s pay coverage, in line with individuals with information of their involvement.
UBS, Bain, BCG, McKinsey and Oliver Wyman declined to remark.
Extra reporting by Michael O’Dwyer