Explore how technology and healthcare are driving investment banks’ growth and sparking significant consolidation in the advisory sector this week.
In the ever-evolving landscape of mergers and acquisitions (M&A), technology and healthcare have emerged as the veritable titans, significantly enriching investment banks. This week alone, these sectors have not only proven to be lucrative but are also catalyzing a wave of consolidation among advisory firms.
According to the latest data from Dealogic, the technology sector alone generated approximately $7 billion in M&A advisory fees in 2024, while healthcare transactions contributed over $4 billion. These figures starkly outpace those from the energy, utilities, finance, and oil and gas sectors, each of which managed to secure around $2 billion. It appears that while the rest of the industries are playing checkers, technology and healthcare are playing chess—strategically positioning themselves for the next big move.
Moreover, the recent acquisition of the French advisory firm Bryan, Garnier & Co., which specializes in technology and healthcare, by the U.S. bank Stifel underscores the growing interdependence of these sectors. This merger follows two notable takeovers in Germany, further illustrating the trend of consolidation among advisory firms that are keen to capitalize on the burgeoning M&A landscape.
The Dealogic report reveals that total M&A fees reached an impressive $33 billion in 2024, marking an eleven percent increase from the previous year. This growth trajectory is particularly noteworthy when juxtaposed with the overall investment banking sector, which encompasses IPOs, capital increases, and debt deals. The total revenues for investment banking surged by a remarkable 26 percent, reaching $86.6 billion in 2024.
In this competitive arena, J.P. Morgan continues to reign supreme, leading both the M&A and overall investment banking categories, followed closely by Goldman Sachs. In the M&A discipline, Morgan Stanley, Bank of America (BofA), and Jefferies round out the top contenders. Interestingly, Deutsche Bank, while absent from the top ten in revenue generation, manages to secure a spot in the tenth position for total transaction volume—albeit by the skin of its teeth.
The rankings are predominantly influenced by billion-dollar transactions, yet a significant portion of investment banking activity occurs within the small to medium-sized segment. The industry has witnessed a flurry of mergers in recent years, including Stifel’s acquisition of the Frankfurt-based consulting firm Mainfirst in 2019 and Acxit in 2022, which focused on medicine and technology, particularly digital platforms. With the addition of Bryan, Garnier & Co., which has established a presence in Munich, Stifel is further solidifying its footprint in the European market.
In the German landscape, Bryan, Garnier & Co. has recently garnered attention following the disintegration of Goetzpartners, as a team led by M&A expert Uli Kinzel transitioned to the firm. Kinzel now spearheads the European healthcare division as a partner, signaling a strategic alignment with the burgeoning healthcare sector.
As we navigate this intricate tapestry of mergers and acquisitions, one thing is abundantly clear: technology and healthcare are not merely sectors; they are the lifeblood of modern investment banking, driving innovation, growth, and, undoubtedly, a fair share of intrigue.
