2023 banking and capital markets M&A outlook

Deloitte
By March 15, 2023 12:08

2023 banking and capital markets M&A outlook

Banking and capital markets (B&CM) mergers and acquisitions (M&A) have been on a roller-coaster ride for several years. Transaction volumes and values climbed steadily prior to the COVID-19 pandemic, only to hurtle downward in 2020. Activity shot up the following year, then slid again in 2022 due to rising inflation, interest rate hikes, ongoing economic uncertainty, and other factors. Escalating regulatory scrutiny also may have discouraged some B&CM players from attempting deals. All three major B&CM sectors were impacted last year. Banking saw major drops in total deal volume and value, along with an average deal value decline. Investment management (IM) and wealth management (WM) suffered from falling asset values that dented returns, though WM remains a highly profitable, sought-after specialty. Financial technology (fintech) companies stumbled as previously inflated valuations fell back to earth, particularly in the buy now, pay later (BNPL) subsector. And cryptocurrency exchanges were slammed by the Futures Trading Ltd. (FTX) bankruptcy and indictment of its chief executive officer on multiple criminal charges. 

Deloitte
By March 15, 2023 12:08

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