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

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Goldman Sachs

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.

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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 SachsJPMorganMorgan StanleyBank of America | Citigroup

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