The dealmaking downturn that started in 2022 has weighed on investment banking revenue, but the third quarter produced good results in the M&A advisory and capital markets underwriting businesses for the large US investment banks. RBC Capital Markets analyst Gerard Cassidy joined the Pipeline to discuss the results, the risks that could slow dealmaking and the importance of financial sponsors to the investment banks. Cassidy also touched on Wells Fargo's goal of becoming a top-five investment bank, and St. John's goal of returning to the Final Four of the men's college basketball NCAA tournament. More S&P Global Market Intelligence Content: M&A in Focus Webinar: The State of the Middle Market Webinar: M&A in Focus: Dealmaking Amid High Volatility Market Intelligence news: Wells Fargo new hires advise on PNC Financial's FirstBank acquisition Credits: Host: Joe Mantone Guest: Gerard Cassidy Published With Assistance From: Kyle Cangialosi and Patrick Moroney
In this episode of the Pipeline podcast, Eddie Best, a partner at Willkie Farr & Gallagher LLP and co-chair of the firm's capital markets practice, discusses how the regulatory-friendly business environment is helping to open the IPO window. Best also examines how reducing reporting requirements and tailoring SEC rules to the size of companies can alleviate regulatory burdens for publicly traded companies. He points out that lowering compliance costs could encourage more companies to consider going public. However, while easing regulations might benefit the IPO landscape, Best notes that this must be balanced against investor protection and the need for transparency. More S&P Global Market Intelligence Content: Webinar: M&A in Focus: Dealmaking Amid High Volatility Oct. 9 M&A in Focus Webinar: The State of the Middle Market Market Intelligence news: Wells Fargo new hires advise on PNC Financial's FirstBank acquisition Credits: Host: Joe Mantone Guest: Eddie Best Published With Assistance From: Sophie Carr, Patrick Moroney and Alison Perico
In this episode of The Pipeline podcast, Anu Singh, a managing director in Kaufman Hall's M&A practice, discusses the outlook for transactions in healthcare services and how the dealmaking strategy is changing to focus on strategic partnerships instead of just creating scale through consolidation. Singh expects private equity to remain interested in the space, especially on the physician side, but he added that regulators will likely continue to scrutinize market concentration. Overall, Singh sees dealmaking in healthcare services as being on the rise and anticipates that the activity will return to pre-COVID levels in 2026. More S&P Global Market Intelligence Content: Webinar: M&A in Focus: Dealmaking Amid High Volatility Balance sheet, M&A and capital raising strategies for a volatile environment Navigating M&A Trends During Market Volatility Credits: Host: Joe Mantone Guest: Anu Singh Published With Assistance From: Sophie Carr, Patrick Moroney and Alison Perico
In this episode of The Pipeline podcast, Devin Ryan, an equity research analyst with Citizens JMP, provided insights into the current state and future prospects of mergers and acquisitions. Following a record-breaking year in 2021, the M&A landscape faced significant challenges in 2022 and 2023. However, Ryan expressed optimism that 2023 may represent a low point and activity is getting closer to more normal levels. A key factor in the recovery is the role of private equity firms and whether they start deploying more dry powder. More S&P Global Market Intelligence Content: Webinar: M&A in Focus: Dealmaking Amid High Volatility Price tags on biggest M&A deals grow larger in 2025 Balance sheet, M&A and capital raising strategies for a volatile environment Navigating M&A Trends During Market Volatility Credits: Host: Joe Mantone Guest: Devin Ryan Published With Assistance From: Sophie Carr, Patrick Moroney, Alison Perico and Feranmi Adeoshun
In this episode of The Pipeline, S&P Global Market Intelligence's Joe Mantone speaks with Carole Streicher, the deal advisory and strategy service group leader for KPMG in the U.S., to discuss the evolving landscape of M&A activity amidst changing economic conditions. They discuss the initial pause in M&A due to tariffs, which introduced significant economic uncertainty, and how companies are now reassessing their supply chains and considering geographic expansion as a strategic response. Streicher shares insights from KPMG's recent mid-year M&A survey, revealing that despite the challenges posed by tariffs, dealmakers remain optimistic about M&A prospects for 2025 and 2026, driven by favorable tax policies and antitrust initiatives from the current administration. The conversation highlights the complexities introduced by tariffs, which not only add costs and time to deals but also complicate the valuation process. The episode also addresses sector-specific trends, noting that industrial manufacturing and consumer retail are most impacted by tariffs. Streicher emphasizes the increasing activity in the energy sector, driven by the growing demand for energy, particularly in relation to the AI revolution. Looking ahead, they discuss the critical need for thorough due diligence and scenario modeling in navigating the current M&A landscape. Join this insightful discussion that offers valuable perspectives on the current and future state of M&A, providing essential information for deal practitioners. More S&P Global Market Intelligence Content: Webinar: M&A in Focus: Dealmaking Amid High Volatility Balance sheet, M&A and capital raising strategies for a volatile environment Four $10B-plus deals in May contribute to M&A revival Navigating M&A Trends During Market Volatility Host: Joe Mantone Guest: Carole Streicher Edited By: Marz Marcello Published With Assistance From: Sophie Carr, Patrick Moroney, Feranmi Adeoshun, and Alison Perico
In this episode of The Pipeline, S&P Global Market Intelligence's Joe Mantone sits down with Richard Truesdell, a partner and global chair of capital markets at Davis Polk, to discuss the current landscape of the IPO market. They explore the cyclical nature of IPO activity, noting recent increases, particularly in the tech sector, while acknowledging that overall numbers remain low compared to historical standards. The conversation delves into the impact of market volatility, driven by factors such as tariff concerns and Federal Reserve decisions, which have affected IPO momentum. Truesdell highlights the importance of conservative valuations in today's choppy market, explaining how companies willing to accept these terms are prioritized for successful IPOs. The resurgence of SPACs is also a key topic, with a notable increase in SPAC IPOs in the first quarter of the year, despite low merger activity. The episode covers sector-specific trends, including the challenges facing biotech IPOs due to regulatory uncertainty, and the role of cornerstone investors in de-risking IPOs. Looking ahead, Mantone and Truesdell discuss the necessity of market stability and investor demand for a robust IPO market, emphasizing the pent-up supply-side demand and the potential for regulatory changes to facilitate more IPOs. Join a candid discussion that illuminates the current and future state of IPOs, offering valuable perspectives for investors and market participants alike. More S&P Global Market Intelligence Content: Navigating M&A Trends During Market Volatility Two $10B-plus financials deals led April worldwide M&A After yearlong recovery, global IPO activity sputters in Q1 Credits: Host: Joe Mantone Guest: Richard Truesdell Edited By: Marz Marcello Published With Assistance From: Feranmi Adeoshun, Sophie Carr, Patrick Moroney
In this episode, Joe Mantone is joined by West Riggs, head of equity capital markets at Truist Securities, who discusses IPO activity in 2024 and the outlook for 2025. West also touches on interest rate cuts and how the U.S. elections tend to impact the market. More S&P Global Content: • Subscribe to our monthly M&A in focus newsletter • Listen to a webinar on capital markets activity in H1 2024 • See our latest news headlines Credits: • Host: Joe Mantone • Producer: Adam Kovalsky • Published with assistance from: Carl Schmidt
On this edition of the Pipeline, an S&P Global Market Intelligence podcast, we speak with Michael Mufson, managing partner of the investment banking firm Mufson Howe Hunter. Many of the deals Michael's firm works on involve private equity. The absence of private equity has been a big reason for the downturn in M&A that started in 2022, but Michael sees that changing. The amount of dry powder in PE coffers along with the number of portfolio companies that PE needs to liquidate should serve as a catalyst for M&A, Michael said. But through the first half of 2024, M&A volumes have remained largely muted, especially in the middle market. I started off asking Michael about that. Here's our conversation.
During recent earnings conference calls, executives from Evercore, Moelis and Lazard said interest rate cuts aren't the only driver that will push private equity firms to pursue transactions. The rise in private credit funds gives advisory-focused investment banks an opportunity to increase their exposure to the debt business.
About six to nine months ago companies were preparing to stay private longer, but now management teams are gaining confidence that they can execute a successful IPO, said Dave Stadinski, Piper Sandler's global co-head of equity capital markets. A pickup in the IPO market would certainly be welcome by deal advisers because Stadinski notes the the current slowdown in the capital markets has been longer than the one that occurred around 2008 and the Great Financial Crisis.
Bill Curtin, global head of the M&A practice at the law firm Hogan Lovells, joined The Pipeline podcast and spoke about how dealmakers are executing transactions in the current environment. One of the headwinds slowing deals of different sizes is increased scrutiny from regulators. But Curtin said companies are factoring in the additional hurdles and pursuing transactions in part because deals help acquirers keep up with the latest technology trends. Curtin also noted that joint ventures have become more common during the recent M&A downturn.
JMP Securities analyst Devin Ryan expects that 2023 will mark a trough year for M&A and 2024 can put investment banks on a path to acceleration in their advisory fee business.
The IPO market has been extremely slow since the early part of 2022. The lack of activity has created some "pent-up supply" of high-quality companies that are ready to go public, according to Seth Rubin, head of US equity capital markets for Stifel Financial Corp. Rubin recently spoke with The Pipeline about the strategies some companies are taking to execute an IPO, the outlook for the market as a whole and the future of SPAC issuance.
The amount of time it takes to meet US pre-merger compliance requirements has the potential to skyrocket if regulators move forward with a rulemaking proposal. The Pipeline recently spoke with Kara Kuritz, a partner in Vinson & Elkins' antitrust practice, to get a better idea on what the proposed changes entail and a bit of a history lesson on the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
While many banks are being unfairly painted with a broad brush, institutions will face tougher regulatory examinations and pressure on probability and that should ultimately lead to a strong rebound in bank M&A activity. Those views were delivered by members of the investment and advisory community during two panel discussions focused on bank liquidity that S&P Global Market Intelligence hosted on May 18. The panels featured Ben Azoff, partner at Luse Gorman; Isaac Boltansky, director of policy research at BTIG; Bill Burgess, co-head of financial services investment banking at Piper Sandler; Greg Hertrich, head of U.S. depository strategies at Nomura; Jonah Marcus, partner and portfolio manager at Endeavour Capital; and Chris McGratty, head of US bank research at KBW. In the episode, we discuss the highlights of the panels with fellow moderator, Nathan Sovall, the head of S&P Global Market Intelligence's financials research and the host of Street Talk, a podcast that takes a deep dive into the banking sector. The panelists offered their view of bank valuations, whether institutions should consider repositioning bond portfolios, takeaways from recent regulatory examinations and the outlook for M&A activity.
M&A activity has been slow, but Matt Edgar, founder of the recently launched Edgar Matthews & Co. LLC, said the landscape offers opportunities for a new investment bank.
M&A activity was slow in 2022, and the start of 2023 hasn't been much better. What will it take to get the investment banking businesses going again? We talk with RBC Capital Markets analyst Gerard Cassidy about that very topic.
Reduced valuations have many potential buyers wanting to purchase their preferred targets at lower multiples, and the proposals are leading to debates inside the boardrooms of would-be sellers.