Investment banks are increasing Trump’s mergers and acquisitions, he said
President-elect Trump won’t officially take office for a week, but investment bankers say the start of Trump-related deals is already underway — a deal stymied by the regulation-heavy Biden administration is set to explode.
That was the conclusion of a panel of investment bankers and private equity executives who discussed the return of corporate deals at the Frontiers Digital Finance conference in Miami on Tuesday.
Jeffrey Levine, managing director of investment banking giant Houlihan Lockie, who spoke on the panel, said we will have more deals coming to market in 2025. “More capital has been raised in the last three years than in the history of private equity, but not deployed.”
Sponsored by Biz2X, a private lender that provides online lending solutions for small businesses, the conference featured key players in finance and the intersection of finance and politics. Patrick McHenry, a former North Carolina congressman and chairman of the House Financial Services Committee, said Trump’s victory combined with Republicans retaining control of the House and a majority in the Senate would usher in a new era of deregulation, which is in place in the Senate. Encourage the creation of capital.
How will Trump’s earnings affect EM and the market?
“Washington is open, and the United States economy is open,” McHenry said. “The Post-Financial Crisis Era of Regulation, Legislation and Politics is Dead and Gone.”
At the discussion forum on mergers and acquisitions, Barclays Financial Institutions Group Managing Director David McGowan pointed out that he is looking at the need for an agreement in anticipation of a simplified regulatory process from the upcoming Trump administration’s Federal Trade Commission, Federal Communications Commission. and the Justice Department’s Antitrust Division.
Biden appointees to lead those three agencies have halted all M&A activity in recent years. Those who chose to violate regulatory restrictions faced protracted legal battles with the Biden deal police.
That said, Trump is not expected to offer carte blanche to all deals. Its regulators are still skeptical about the power of Big Tech and may view Google, Apple, Amazon, Facebook and other tech giants with suspicion as they continue to grow in size.
Little regulation will accumulate future shares, said Benny Welz CEO
Once Trump completes leadership appointments at key agencies, other businesses, such as banks, may face less regulatory scrutiny than Big Tech.
McGowan said Barclays is currently involved in several transactions that are a direct result of the post-election deal.
During the panel discussion, Avi Mehrotra, Goldman Sachs’ global head of activism, shareholder advisory and regulatory protection practices, said he expects consolidation in regional banks, small to mid-sized banks with less than $100 billion in assets.
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Because of their size, regional banks will benefit from consolidation because of the so-called balancing factors. These represent the cost savings and revenue improvements that result from the increase in size and scope that comes from combining these two entities.
McGowan said Goldman Sachs, Morgan Stanley, JPMorgan and Bank of America each have more than $1 trillion in assets and accounted for more than half of the banking industry’s profits last year.
McGowan sees this as a potential risk, looking at relaxing rules to help mitigate that risk and promoting smaller boutique firms.
“Part of the value of consolidation is finding ways to grow more, and part of it is the focus on the top tier,” he said.
Besides regional banks, other accelerated M&A activity is expected in fintech, industrial and consumer sectors, Mehrotra said.
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According to Warner Bros. People close to the matter say the media industry is poised for consolidation as companies like Discovery, Comcast and others suffer from declining advertising revenue and alleged cord-cutting. Their news and entertainment online.
“The fact of the matter is that Biden thought he was helping consumers by cutting the deal, and what he was doing was making these companies weaker and less competitive,” a media executive told Fox Business on condition of anonymity.