Deal Professionals Predict Financial Services M&A Will Soar
Dealmakers polled in mid-November expect M&A to expand significantly in the financial services, insurance, and real estate (FIRE) sector over the coming year, according to Mergers & Acquisitions’ Mid-Market Pulse (MMP), a forward-looking sentiment indicator derived from monthly surveys of approximately 250 executives published in partnership with McGladrey LLP. (See related chart.)
The 12-month score of 87.2 for FIRE was nearly 17.5 points higher than the comparable score for overall M&A. It was also the highest 12-month score of the six fast-growth industries measured by the MMP ahead of health care; technology, media and telecommunications (TMT); manufacturing; consumer goods and retail; and energy. Short-term expectations for the sector were also high. The three-month composite score of 79.3 for FIRE beat the overall market score of 71.0 but was lower than the three-month score of 84.1 for health care.
Participants were polled between Nov. 10 and Nov. 18, after the mid-term elections. Responses may reflect the belief that Republican control of Congress will result in less regulation of the financial services industry.