M&A activity in the financial services space is booming these days. Banks were spurred by regulators to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Volcker rule, which prohibits depository banks from making investments that are deemed more risky and may not benefit their customers, and they started to sell non-core assets and assets that would make them non-compliant with the rule. Today, in addition to the compliance issues banks are facing, there is a confluence of factors playing a role in the increased M&A activity in the space, such as favorable valuations, a healthier economy overall and a strong financing market.

"There's no single theme that explains why financial services deals are hot these days, but many deals are taking place and we expect that to continue in 2014," says Matt Dailey, a partner with the Riverside Co.

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