Size of financial advisory market worldwide 2011-2016
The global financial advisory market, which is instrumental in mergers and acquisitions (M&As), was valued at 70.4 billion U.S. dollars in 2016. This valuation has increased steadily since 2011. This advising helps firms integrate with other firms, either through horizontal integration (mergers) or vertical integration (acquisitions).
Why is M&A important?
Economies of scale is the idea that some industries are more efficient when firms are larger. Investment banks facilitate these M&A deals. This allows the firms involved to become more profitable, and the investment banks generate a large portion of their revenue from these activities.
M&A deals
The largest M&A deals can exceed 100 million U.S. dollars in value. Since some sectors are more suited for integration, the value of deals depends on the industry . The leading investment banks monitor these industries closely. Participating in these deals generates significant revenues for these banks, giving them incentive to find companies that are ready for the process.
Why is M&A important?
Economies of scale is the idea that some industries are more efficient when firms are larger. Investment banks facilitate these M&A deals. This allows the firms involved to become more profitable, and the investment banks generate a large portion of their revenue from these activities.
M&A deals
The largest M&A deals can exceed 100 million U.S. dollars in value. Since some sectors are more suited for integration, the value of deals depends on the industry . The leading investment banks monitor these industries closely. Participating in these deals generates significant revenues for these banks, giving them incentive to find companies that are ready for the process.
