However, once credit markets begin to loosen, deal volume will undoubtedly recover, allowing banks to deploy pent-up cash in the acquisition of attractively priced assets.
Charlottesville, VA (Vocus) April 14, 2009
SNL Deal Book data shows that there were only 157 deals for banks and thrifts in 2008, for a total value of $36.0 billion. Wachovia's $15.1 billion emergency sale to Wells Fargo made up nearly half of the total dollar amount. By contrast, there were 285 deals totaling $72.0 billion announced in 2007.
For the second year in a row, Goldman Sachs & Co. ranked first by total deal value among financial advisers in whole-institution acquisitions, with a total of $26.8 billion from 5 deals. Sandler O'Neill & Partners LP topped the list for number of deals, serving as adviser on 24, and ranked fourth by total deal value at $11.7 billion.
"The M&A market for banks and thrifts in 2008 was one of the worst in recent history, and so far this year, we've seen a continuation of that downward trend," said Kris Niswander, Associate Director of Financial Institutions at SNL. "However, once credit markets begin to loosen, deal volume will undoubtedly recover, allowing banks to deploy pent-up cash in the acquisition of attractively priced assets."
In addition to the bank & thrift industry, SNL's Deal Book also examines deals involving insurance, securities & investments, specialty finance and financial technology companies. The data indicates declining deal volume for these industries, though not as severe as for banks & thrifts. Insurance M&A showed the most moderate decline, with a total of $26.8 billion from 361 deals in 2008 versus $33.5 billion from 371 deals in 2007.
About SNL's Financial Institutions Deal Book
SNL's Financial Institutions Deal Book provides a comprehensive directory of 2008 M&A deals; sector-specific financial and legal adviser rankings; de novo offerings; capital offerings league tables; and a complete listing of all TARP and TLGP debt issuances by financial institutions. For more information on obtaining a copy of the Deal Book, call 434.951.7797, email firstname.lastname@example.org, or visit http://www.snl.com/products/bank/myb.asp.
About SNL Financial
SNL collects, standardizes and disseminates all relevant corporate, financial, market and M&A data - plus news and analysis -- for the Banking, Financial Services, Insurance, Real Estate, Energy and Media & Communications industries. For more information, visit http://www.SNL.com.
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