EY - Global financial services M&A themes 2014

Global financial services M&A themes 2014

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We explore key themes that are expected to influence M&A activity in 2014 across banking and capital markets, insurance and wealth and asset management.

Continued fall in deal activity

In 2013, the financial services sector recorded a further slow-down in global financial services M&A activity. This is the fourth year in succession that deal volumes have fallen. Overall, deal activity was 10% down on 2012 and some 21% lower than 2010. Disclosed deal values also fell 6% from 2012 and 16% from 2010.

EY infographic showing year-on-year deal volume change

The banking sector witnessed the sharpest drop in deal activity, with a 13% drop in deal volumes compared to 2012.

The insurance sector also witnessed a drop in deal activity in 2013, with a 9% drop in deal volumes and an 18% fall in disclosed deal values. Investment into rapid growth markets remains a key theme, with Eastern Europe attracting significant inbound activity in 2013.

Despite a number of landmark transactions in Europe, there was a 4% decline in the volume of deals in the global wealth and asset management sector and a steep 39% drop in disclosed deal values.

Cross-border activity remains buoyant across all the three financial services sub-sectors, with inter-regional transaction flows of US$53b (over 25% of aggregate disclosed deal value).

Investment into rapid growth markets remains a key theme, with Eastern Europe attracting significant inbound activity in 2013.

Year-on-year change in deal volume

EY infographic showing year-on-year deal volume change in financial services in 2013 ×