Advisers who understand your sector
Our Financial services sector team combines a broad range of experience across the insurance and reinsurance underwriting, insurance broking, life and pensions, banking and wealth management industries. Members of our advisory team have worked in an operational, management or advisory capacity for a wide variety of companies in the sector including:
Key Financial services market themes for 2016 H2:
New regulations coming into force
Regulations in the financial sector will continue to put pressure on the industry, and this could fuel a reshaping of the sector, with divestment and new entrants. Unfortunately, it will also have a negative impact on risk taking and the appetite for financing in M&A and the alternative finance space.
Brexit Causing a Stir
Political headwinds in Europe caused a slowdown in deal activity during H1 2016, with European M&A activity ($342.8bn, 3,110 deals) dropping 19.3% by value compared to H1 2015 ($424.5bn, 3,287 deals).
Rise of Disruptive Forces
Banks are concerned that disruptive digital innovations outside the industry, from technology start-ups and existing technology firms will gain favour, and be another threat to their business. These new products could lead to a shift in global wealth, risk management and Investment Management.
Disruptive technologies such as Bitcoin, blockchain, and other evolving sectors, as well as the FinTech industry, are developing and investors and larger firms are getting excited and ready to snap up vertical buys.
International M&A trends & market analysis
The following Financial services sector market data and commentary are produced by our market research team and global Financial services sector specialists as part of our semi-annual all sectors global report. The data are organised into all Financial services businesses valued over $5m “All Market” and Financial services businesses valued in the range $5m to $150m the “Lower-Mid Market”.
Historic valuation trends:
The following chart shows international Financial services sector business valuations over time, based on semi-annually averaged transactional data:
Regional valuation variation:
The following chart shows international Financial services sector business valuations by region, based on listed company multiples as at 20 September 2016:
Sub-sector valuation variation:
The following chart shows international Financial services sector business valuations by sub-sector, based on listed company multiples as at 20 September 2016: