MIAMI, Jan 14 (Reuters) - Wall Street bankers are expressing optimism about a potential increase in mergers and acquisitions this year, which is expected to boost overall investment banking activity.
Deals may take time to materialize, but buyouts, including bank acquisitions, could start gaining traction in the second half of 2025.
Here are statements from the Frontiers of Digital Finance conference in Miami:
AVINASH MEHROTRA, CO-HEAD OF M&A AMERICAS, GOLDMAN SACHS:
"Four banks currently hold over a trillion dollars in assets. There seems to be an anticipation that regulators would likely welcome at least one or two more institutions of that size, fostering a more competitive environment.
However, the most significant activity is foreseen in the regional banking sector, particularly involving banks holding under $100 billion in assets.
Regarding timing, the commencement might be gradual but is expected to accelerate."
DAVID MACGOWN, MANAGING DIRECTOR AT BARCLAYS:
"Merger and acquisition endeavors have noticeably intensified following the elections. Various factors underlie this pent-up demand stemming from a couple of turbulent years in the financial market, reduced sponsors, and skewed ratios.
Currently, there is a pent-up appetite for deal-making. The market now presents a greater number of deals and assets available for sale, yet navigating and closing transactions remains challenging."
JEFFREY LEVINE, GLOBAL CO-HEAD OF FINANCIAL SERVICES AT HOULIHAN LOKEY:
"Private equity has raised a record amount of capital in the past three years, although deployment has not been commensurate.
The market has experienced an imbalance between buying and selling activities, influenced by interest rates and credit conditions, yet a transformation is underway.
Market activity is visibly on the rise. The number of deals already emerging in 2025 surpasses the aggregate of the past two years."