MIAMI, Jan 14 (Reuters) - Wall Street bankers are
already upbeat about a revival in mergers and acquisitions this
year that will buoy broader investment banking activity.
It may take some time for deals to materialize, but buyouts
including bank deals could gain momentum in the second half of
2025.
Here are quotes from the Frontiers of Digital Finance
conference in Miami:
AVINASH MEHROTRA, CO-HEAD OF M&A AMERICAS, GOLDMAN SACHS ( GS ):
You have four banks that have over a trillion dollars in
assets. I think there's an expectation that the regulators would
welcome at least another one or two in that stratosphere, so
that we've got an environment where we have more competition.
But I think we are going to see the most activity in the
regional bank space, which would include banks that are under
$100 billion in assets.
On the timing, it is going to start a bit slower, but will
pick up pace.
DAVID MACGOWN, MANAGING DIRECTOR AT BARCLAYS ( JJCTF ):
M&A activity has picked up markedly post-elections. There
are a host of reasons driving the pent-up demand from what has
been a couple of years of market turmoil across financial
institutions, less sponsors and some skewed ratios.
Now there's pent-up demand for deals to get done. There are
more deals in the market now, more assets for sale, but
threading the needle and trying to get things done is
challenging.
JEFFREY LEVINE, GLOBAL CO-HEAD OF FINANCIAL SERVICES AT HOULIHAN
LOKEY ( HLI ):
More capital has been raised in the last three years than in the
history of private equity, but it hasn't been deployed.
There's definitely been a mismatch between buying and
selling and a lot has to do with interest rate environment and
credit conditions, but that is shifting now.
We are seeing more activity in the markets. We have more
deals already coming into the market in 2025 than we had in the
last two years.