We hosted a panel discussion on Thursday 12 January at 11am on the outlook for financial sector M&A in Ireland and Europe in 2023. Our expert panel analysed key considerations for stakeholders in the sector, discussed deal trends and gave practical guidance for financial services firms considering acquisitions, joint ventures, and divestments in 2023.
For this panel we were joined by our guest speakers, Hubert Vannier, Global Co-Head of Financial Institutions M&A, Deutsche Bank London and Stephen Kane, Director of Investment Banking, Goodbody Stockbrokers Dublin.
- Liam Flynn, Financial Regulation Partner, Mason Hayes & Curran
- Justin McKenna, Corporate Partner, Mason Hayes & Curran
- Sarah Cloonan, Financial Regulation Partner, Mason Hayes & Curran
- Sara O’Reilly, Investment Funds Partner, Mason Hayes & Curran
Mainstream financial institutions continue to struggle to generate growth from traditional sources. The outlook for consolidation/acquisition activity in particular is unclear, although some commentators have nevertheless forecasted that up to 50% of revenue growth in the banking industry could come from M&A activity in the years ahead.
However, FinTechs, payment firms and neobanks are awash with cash and actively seeking growth and acquisition targets, sometimes in competition with traditional banks. Sectors such as fund administration, specialist finance and insurance broking are hot with activity – so what is the overall outlook for 2023? And what could be the drivers of deal activity? ESG, digital transformation and regulatory pressures have all been mentioned, but with the global economy in an inflationary phase and financing conditions tightening, acquisition-driven growth will not necessarily be straightforward.