NEW YORK: Morgan Stanley is seeing a strong deal pipeline next year for mergers, acquisitions (M&A) and initial public offerings, its co-head of investment banking, Mo Assomull, says.
M&A pipelines are broadly healthy across sectors, with technology, healthcare, industrials and financials being particularly active, he said on a panel at the Reuters Next conference in New York.
The economic backdrop for deals is also supportive, he added.
The Trump administration’s pro-growth stance is also expected to spur consolidation in the financial sector, Assomull said.
“We do expect to have more banks-related M&A over the next few years, for many reasons,” he said.
Those reasons include a more friendly regulatory environment and lenders’ need to increase their scale.
Regarding artificial intelligence, investors and lenders have become more “discerning” about financing companies in the space, he said.
Morgan Stanley’s profit beat estimates in the third quarter as a surge in dealmaking drove revenue to records. — Reuters
