TORONTO, ON / ACCESSWIRE / December 7, 2020 / Finance executives at Toronto-based Hamilton Chukyo Brokerage have today said that due to a flurry of transactions during the past week, 2020 is now the second-busiest year since the financial crisis for deals involving banks, fintech firms, insurance companies and asset managers.
Since the financial crisis, the $507 billion in financial services transactions reported this year has only been topped by 2019. Whilst overall dealmaking around the globe lags behind 2019 at this time by around $400 billion, the total 2020 financial dealmaking is up 11 percent from last year, with much of December still to come.
"There has been a lot of action in asset management, wealth management, fintech, insurance, market structure and payments, and we expect to see more merger activity in financial services before the year-end," said Anthony Roberts, Head of Institutional Trading at Hamilton Chukyo Brokerage. "In addition to healthcare and technology, we believe financial services will be one of the busiest sectors for M&A next year."
Amid an unpredictable economic outlook, large corporations in good condition are seeking scale and diversity. They are also searching for new business models and technologies that have proven their prowess this year and can be trusted to succeed in the adjusted landscape ahead of the coronavirus pandemic.
"There is still more to arrive this year, particularly for popular special purpose acquisition companies. Bill Foley's blank-check company is in advanced negotiations to merge with payments company Paysafe Group Ltd, and Perella Weinberg Partners, the boutique investment bank, is close to launching its share offering through a SPAC backed by finance entrepreneur Betsy Cohen," said Michael Williams, Head of Private Wealth Management at Hamilton Chukyo Brokerage.
Next year, financial dealmaking is forecast to remain healthy, especially in Europe where long-awaited banking mergers are underway. Spain is at the center of this surge, and it also sees the Italian banking sector set for deals.
Hamilton Chukyo Brokerage provides financial advice and asset management services to private, institutional and corporate clients worldwide.
Christian Marcus, Head of Market Research
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SOURCE: Hamilton Chukyo Brokerage