A&M Report: Deal Activity Poised For Growth
This year will see accelerating deal activity due to strong market fundamentals and pent-up demand by both corporate and strategic investors, according to a new report released by Alvarez & Marsal.
Analyzing key financial services industry dynamics and deal drivers, the report forecasts substantial M&A activity growth across the banking, insurance and asset management sectors.
“Stronger macroeconomic fundamentals and improving liquidity and capital levels have shifted the focus of financial services firms from preservation and strategic rationalization to growth,” said Osman Khan, managing director and financial services M&A leader with A&M’s Transaction Advisory Group. “With weak organic growth prospects and increasing desensitization to continued regulatory pressure, financial services firms will seek growth via acquisition to expand product capabilities, realize cost synergies and develop scale in an increasingly commoditized environment.”
Among the factors expected to spur 2014 M&A growth across the financial services industry, the report points to:
The full report, titled “Rising Tides: A Case for Growth – 2014 Financial Services M&A Trends,” analyzes data obtained from SNL Financial as of January 1, 2014. In addition to forecasting 2014 growth, it examines the factors behind deal activity in 2013.