Financial Services M&A Volume Ticked Up In 2020

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Financial Services M&A Volume Ticked Up In 2020

According to a recent S&P Global Market Intelligence analysis, U.S. financial services M&A activity increased in 2020 in terms of deal volume, despite the uncertainties surrounding COVID-19. In total, 2020 saw 420 whole-company and minority stake deals announced compared to 396 deals in 2019.

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Q4 2020 hedge fund letters, conferences and more

Key highlights from the analysis include:

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  • Despite the uptick in deal volume year over year, 2020’s aggregate deal volume was less than 2019 at $34.15 billion compared to $45.33 billion.
  • Overall, there were 94 asset deals announced in 2020 compared to 123 deals in the prior year, but deal value rose year over year to $6.72 billion from $6.43 billion.
  • Morgan Stanley was responsible for both of the largest acquisitions of 2020: its $13.13 billion deal for E*TRADE Financial Corp. and its $6.93 billion purchase of Eaton Vance Corp.

Financial Services M&A Activity Picked Up In 2020

U.S. financial services M&A activity managed to pick up in 2020 in terms of whole-company and minority deal volume, despite the macroeconomic uncertainty caused by the coronavirus pandemic. However, the total value of those M&A transactions was lower than in 2019.

According to S&P Global Market Intelligence data, there were 420 whole-company and minority stake deals announced in 2020, with an aggregate deal value of $34.15 billion, compared to 396 deals worth $45.33 billion in 2019.

Meanwhile, there were 94 asset deals announced in 2020 compared to 123 deals in the prior year, but deal value rose year over year to $6.72 billion from $6.43 billion.

Morgan Stanley was responsible for both of the largest acquisitions of 2020: its $13.13 billion deal for E*TRADE Financial Corp. and its $6.93 billion purchase of Eaton Vance Corp.

Financial Services M&A

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Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

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