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M&A in the Financial Institutions Sector

Financial service is an area where we see great change and innovation happening to fill new market needs. It encompasses the economic services provided by the financial industry, covering a broad range of organizations that manage money, including credit unions, banks, credit card companies, insurance companies, accountancy companies, consumer finance companies, stock brokerages, investment funds, real estate funds and some government sponsored enterprises.

Services are taking a larger market position compared to other sectors. According to the OECD the services sector now accounts for over 70% of total employment and value added in OECD economies. It also accounts for almost all employment growth in the OECD area. Bloomberg states that Services continue to be the most sought-after private-sector commodities that the government purchases.

In Europe, even with the uncertainty of Brexit, the 2019 M&A forecast is strong for banks and asset/wealth management. However, while lucrative opportunities still exist in consumer finance, an increase in regulations make careful assessment of a target’s strengths and weaknesses critical.

In the US, as of Feb 2019 deal volume has surpassed the $33 billion annual total in 2017. Regional consolidation and digital marketing strength have boosted the top banks in the American landscape, accounting for the vast majority of deposit and net growth in debit cards. Recent transactions are setting a new standard of attractiveness with the “mergers of equals” (MOEs) strategy where deals are structured to reward all stakeholders.

CDI Global Expertise

Our team of experts at CDI Global have decades of combined banking and financial institution experience vital to delivering the best results from cross-border M&A, debt and equity transactions, making us a leader advisor for the financial sector. We have advised several financial advisory and wealth management businesses, financial services software businesses, as well as range of professional services and management consultancy businesses. Our proven success is aided by our international reach, giving us insight to global trends and positioning our clients for future endeavors.

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