BDA Partners has reduced its headcount in Shanghai as the firm navigates growing competition in China and uncertainty in the mergers and acquisitions market, according to people familiar with the matter. The move makes BDA the latest financial services company to scale back in the world’s second-largest economy.
Sources indicated that five investment bankers based in Shanghai were laid off, while a couple of others were shifted to the Hong Kong office. Three senior bankers remain in Shanghai to continue working on existing assignments and to explore new opportunities, the people added. To further manage expenses, BDA is also considering relocating to a smaller office in the city, although no decision has yet been finalized.
Established in 1996, BDA Partners has its headquarters in New York and Singapore and provides M&A advisory services largely focused on Asia. The firm specializes in small to mid-sized cross-border transactions and operates offices in Shanghai, Hong Kong, Tokyo, Seoul, Mumbai, Ho Chi Minh City, and London.
BDA first entered China in 1999. In an emailed statement to Bloomberg, Simon Kavanagh, the firm’s head of Greater China, affirmed its commitment to the market, saying, “We remain dedicated to mergers and acquisitions across China, Hong Kong, and Taiwan, and continue to maintain senior bankers both on the ground in Hong Kong and in mainland China.”
Although deal volumes involving Chinese companies have seen some growth this year, industry observers note that the overall environment remains challenging for investment banks and advisory firms alike.