Goldman Sachs and Morgan Stanley reap the rewards of Jumbo M&A

Hi! Aaron Weinman reports from New York. Amazon’s purchase of One Medical for $3.9 billion could earn Goldman Sachs and Morgan Stanley millions of dollars in consulting fees each. It comes as investment banks come under the microscope during a slow year in deals.

Let’s find out which of the two Wall Street giants made this deal.


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Money and stethoscope

Goldman Sachs and Morgan Stanley are in line for multimillion-dollar paydays after Amazon announced its purchase of One Medical.

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1. Goldman Sachs and Morgan Stanley got the go-ahead for Amazon’s $3.9 billion purchase of One Medical. It’s a welcome payday for the pair, especially after Wall Street’s investment banking teams took on much of the pain of last quarter’s earnings cycle.

Goldman Sachs advised Amazon — rekindling a relationship that dates back to 2017, when the company bought Whole Foods Market for $13.7 billion — and Morgan Stanley advised One Medical on the sale, Insider has learned.

Morgan Stanley has advised One Medical at least three times now, continuing its lead role in the clinic operator’s $245 million initial public offering in January 2020 and its $2.1 billion acquisition. from Iora Health in June last year.

Amid a dearth of M&A activity, a deal of this size is expected to earn each bank millions of dollars in fees. Investment banks typically earn between 2% and 4% (of the enterprise value of a transaction) in revenue for their advisory services. A sought-after customer like Amazon, however, could get banks to lower their price in exchange for the tech giant’s business.

Amazon’s interest in One Medical, meanwhile, began in the spring of 2022, a person with knowledge of the process told Insider. But the company wasn’t looking for a buyer at the time, the person said.

News of Amazon’s acquisition sent One Medical’s stock price to more than $17 a share from just over $10 last week.

To learn more about the genesis of this transaction and the bankers who helped piece together the transaction, see this report from Insider’s Reed Alexander and myself.


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Robert A. Tobiansky/Getty; Boris Zhitkov/Getty; Jake Wyman/Getty; José Miguel Hernandez Hernandez/Getty; Spencer Platt/Getty; Twitter; Anna Kim / Insider


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Offers concluded:

  • Smart Care, a Wind Point Partners portfolio company that provides commercial cooking equipment, acquired Espresso Partnersa coffee equipment company.
  • Fifth Wall, a venture capital fund focused on proptech, closed a fund of 500 million dollars. This was the investor’s first climate-focused fund that will invest in renewable energy and carbon sequestration to decarbonize the real estate sector.

Organized by Aaron Weinman in New York. Tips? E-mail [email protected] or tweet @aaronw11. Edited by Hallam Bullock (tweet @hallam_bullock) in London.

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