Oct 6, 2016
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How Have Total M&A Deals Closed By Major U.S. Investment Banks Trended In The Last 5 Quarters?

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Global M&A activity levels reached new post-recession highs over mid-2015, but an overall slowdown in global macroeconomic conditions hurt M&A deal volumes in early 2016. While the M&A industry has witnessed a recovery over recent quarters, the volume of deals completed has primarily been driven by a strong pipeline of deals pending since last year. This trend is clearly seen in the chart below that captures the total size of M&A deals completed by the five largest U.S. investment banks since Q3 2015. The green-to-red shading for figures along a row show the variations in deal size for a particular bank over this period.

M&A advisory deal volumes for individual banks were taken from Thomson Reuters' latest investment banking league tables . The table below captures the respective market shares for each of these banks over this period. The green-to-yellow shading for figures along a column should help compare the relative standings of these 5 banking giants in a particular quarte..

Global M&A activity levels reached new post-recession highs over mid-2015, but an overall slowdown in global macroeconomic conditions hurt M&A deal volumes in early 2016. While the M&A industry has witnessed a recovery over recent quarters, the volume of deals completed has primarily been driven by a strong pipeline of deals pending since last year. This trend is clearly seen in the chart below that captures the total size of M&A deals completed by the five largest U.S. investment banks since Q3 2015. The green-to-red shading for figures along a row show the variations in deal size for a particular bank over this period.

IB_QA_US_MnA_Comp_SizeChange_16Q3

M&A advisory deal volumes for individual banks were taken from Thomson Reuters' latest investment banking league tables . The table below captures the respective market shares for each of these banks over this period. The green-to-yellow shading for figures along a column should help compare the relative standings of these 5 banking giants in a particular quarter.

IB_QA_US_MnA_Comp_ShareChange_16Q3

It should be noted that the largest M&A deals employ many investment banks, so the market share figures are not exclusive – explaining why total market share for these 5 banks is well above 100%.

Goldman maintains a strong grip on the global M&A industry, with the bank's average market share of 35% over this period being well ahead of the 25% figure for its closest competitors Morgan Stanley and JPMorgan. This has also helped the bank pocket a substantially larger share of global M&A advisory fees compared to any other investment bank. You can see how changes to Goldman's M&A advisory fees impact our price estimate for the bank by modifying the chart below.

See the links below for more information and analysis about the 5 largest U.S. investment banks:

See full Trefis analysis for Goldman Sachs | JPMorgan | Morgan Stanley | Bank of America | Citigroup

View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
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