Many banks, asset managers and insurers are rethinking their business models in light of regulatory and economic changes. They are focused on sustainable net income, given the low-yield investment environment.

As financial services providers seek to secure profitable growth, enter new markets, make use of disruptive technology and rationalize non-core operations, mergers and acquisitions (M&A) are an increasingly important element of the overall strategy.

M&A activity in the financial services sector remains robust. Ongoing consolidation in mature markets, and continued expansion in high growth economies, combined with a focus on securing new distribution, are driving deal activity. In addition, regulators, shareholders and other stakeholders are placing increased demands on financial institutions, which leads to more restructuring and M&A transactions.

We combine our extensive M&A transaction and market experience with the high seniority of our teams, to be well-placed to assist financial services clients and financial investors in developing and executing their M&A strategy.

Our specialized network for financial services M&A brings together transaction experts from nearly two dozen BDO member firms, covering the major European and global markets. We have independently advised on hundreds of deals and executed even more company/portfolio valuations across Europe.

BDO also has a track record assisting regulators. For instance, we have performed valuations under the new Single Resolution Mechanism (SRM) for European banks. We can offer the following:

• Independent, objective, unbiased advice that is free from conflicts of interests in a range of situations
• Senior advisors with extensive experience and a strong track record
• Strength and depth of market expertise across financial services sectors

In particular, our Financial Services Advisory services include:

Valuation

• Business valuation, fairness opinion
• Purchase price allocation (PPA), impairment test
• Valuation of credit and insurance portfolios, funds

Transaction Services

• Due diligence (financial, regulatory, real estate, tax, legal)
• Transaction advisory, negotiation support
• Post merger integration and separation advisory

Mergers & Acquisitions

• Buy-side and sell-side lead advisory, IPO advisory
• Financial fact book, information memorandum
• Strategic business review

Restructuring & Special Situations

• Recovery and resolution plans (RRP), independent reviews
• Portfolio advisory, distressed assets
• Program management, project office support

Regulatory Services

• Business plans, regulatory approval proceedings
• Establishment/relocation of financial institutions
• Business model analysis and internal governance (SREP)

How we help: Almost all of our engagements go beyond offering pure financial advice. We put our extensive regulatory, risk management, forensic, actuarial and tax expertise to work for you as well.

Approximately every second advisory engagement is cross-border and draws on our global network of BDO member firms.

Fintech M&A and investment deals will grow substantially over the next few years. M&A deals can be used to add value to both incumbents and Fintechs. However, direct investments are not the only way to unlock the potential of Fintech. BDO’s FS Corporate Finance practices assist both Fintech companies and traditional financial institutions throughout the M&A and investment process.