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Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Financial Services Industry Sector

By David Sinyard | Apr 19, 2019

The report below gives a good overview of the second quarter M&A activity in the Financial Services Industry Sector. M&A activity for North American based target companies in the Financial Services sector for Q1 2019 included 187 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in February when Mercer Global Advisors, Inc., a subsidiary of Mercer Advisors, Inc., acquired Arbor Asset Management LLC for US$350 million. The transaction allows Mercer Global Advisors to further expand its existing business operations. Founded in 1996, Arbor Asset Management is located in Ann Arbor, Michigan and provides investment advice.

Industry Indicators

  • US corporate profits, an indicator of corporate demand for financial planning and investment advising, rose 7.4% in the fourth quarter of 2018 compared to the same period in 2017.
  • The bank prime loan rate, a tool for financial planners and investment advisers was 5.5% as of the week of March 14, 2019, up from a rate of 4.75% the same week in 2018.
  • US personal income, which is a driver for financial planning and investment services, rose 4.3% in January 2019 compared to the same month in 2018.
  • Total US revenue for other financial investment activities, which includes financial planners and investment advisors, rose 2.3% in the fourth quarter of 2018 compared to the previous year.

Posted by David Sinyard.

Read the Entire Financial Services 2nd Quarter Newsletter Here


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