It's getting worse for investment bankers
Britain's historic decision on Thursday to leave the European Union has, among other things, spelled bad news for the mergers-and-acquisitions market.
"We believe the M&A advisors could be one of the most negatively impacted sectors from the UK's decision to leave the European Union, particularly in the near-term," Goldman Sachs analyst Richard Ramsden wrote in a note on Monday.
For one thing, uncertainty in the market and slower economic growth could "heavily discount" future M&A revenue, Ramsden wrote.
That's particularly likely in Europe, which accounts for 30% of global M&A activity. UK M&A is already down 85% year-on-year in the second quarter, according to the note.
M&A-focused boutique banks are already seeing their stocks plummet: Lazard, PJT Partners, and Evercore's stocks were down more than 11% around noon ET on Monday.
That said, in the long-term, Brexit could actually boost M&A.
"A lower British pound, lower rates and slower growth could all prove conducive to M&A," Ramsden wrote.
Nevertheless, here is the downside Ramsden is forecasting for boutique banks: