Midlands set for surge in financial services M&A activity – Deloitte

ACCOUNTANCY and advisory firm Deloitte is predicting an increase in financial services merger and acquisition activity in the region this year.

It believes that 2015 will surpass 2014 in terms of M&A activity as the Midlands market consolidates in the face of incremental costs, squeezed margins and regulatory pressures.

It suggests the financial services sector will experience more transactions as a result of a number of factors including on-going regulatory developments, access to existing and new sources of capital, competitive pressure driven by creativity and innovation in new product offerings and technological developments, alongside the continued pressure on margins.

Matt Perkins, head of financial services at Deloitte in the Midlands, said: “For financial services businesses in the Midlands, 2015 is likely to bring significant opportunities for M&A. 

“Locally we have seen recent high profile transactions that indicate the willingness and ability of well-positioned businesses to diversify operations and add scale. 

“In addition, regulatory pressures are likely to drive consolidation in the consumer credit sector in particular. These factors, together with interest from private equity in acquiring assets in financial services are likely to drive M&A in the sector over the course of 2015.”