M&A in the financial services, insurance and real estate (FIRE) sector is expected to increase over the next 12 months, but not as much asin some other sectors, according to Mergers & Acquisitions’ Mid-Market Pulse (MMP). Dealmakers surveyed in May gave the FIRE sector a score of 65.1 for the 3-month outlook (one of the lowest scores seen on the MMP that month) and 76.4 for the 12-month outlook, lower than the respective scores of 74.9 and 76.6 given to overall M&A.

While dealmakers are optimistic about many of the economic conditions that affect transactions (as is evident from the high numbers for overall M&A), uncertainty about regulation and taxes is causing a “holding pattern” in the FIRE subsectors, said some survey participants. The survey was fielded before the U.S. House of Representatives passed the Republican bill, called the Financial Choice Act, which seeks to undo significant parts of the 2010 financial reform law.

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