Financial services consolidation deals among key trends for M&A, report says

Investors should take note of companies that are actively pursuing mergers and acquisitions in the face of economic headwinds.

A new report from Bain & Company highlights the resilience of the global dealmaking environment and its research finds that “companies that leverage their strength to continue to pursue M&A outperform those which stand still.”

Looking at past financial crises, the report reveals the strategies that top-performing companies are adopting to navigate challenges such as elevated interest rates and inflation in the US, tariff impacts, and regulatory pressures.

Those businesses that recognise the potential opportunity amid the disruption may also carve out an advantage especially where they are forward-looking to focus M&A on the direction of trade within the context of tariffs, and how consumer behavior is evolving.

Financial services and other high-fixed-cost industries such as telecoms are cited among those that are expected to see consolidation deals, with such transactions set to define the M&A market this year.

There was an uptick in the number of deals involving asset and wealth management businesses in the last few months of 2024, but the near-term outlook is uncertain, according to another recent report from PwC which found that deals in the asset and wealth management space continue to be fueled by fee pressure, the push for scale, and aging founders seeking an exit and to transition their business to the next generation of leaders.

Over half of the ten biggest transactions announced in 2025 have featured private companies as targets, Bloomberg data shows.

Charter Communications Inc.’s merger with Cox Communications, Alphabet Inc.’s acquisition of cybersecurity firm Wiz Inc., and Constellation Energy Corp.’s deal to buy US power plant operator Calpine Corp. are among the deals with price tags of roughly $30 billion or more, including debt.

Such major transactions, alongside Meta Platforms Inc.’s more than $14 billion investment in data-labeling firm Scale AI, have driven a nearly 20% surge in global dealmaking, bringing the total value of mergers and acquisitions worldwide to $1.8 trillion, according to the data.

“In the present, challenging environment, it takes unique conviction and clarity to chart a multiyear strategy and proactively pursue M&A. Yet that’s just what veteran executives are showing us they can do,” said Suzanne Kumar, executive vice president of Bain & Company’s M&A and Divestitures practice. “These executives are separating the signal from the noise and plowing ahead with transformations. Indeed, company leaders with a clear M&A roadmap grounded in a multiyear view will be best positioned to see past near-term volatility and identify unique opportunities for their businesses to make transformative moves.”

Recently announced wealth industry deals include Focus Partners Wealth’s acquisition of David Wealth Management and speculation that BNY and Northern Trust are in talks about a potential merger.