M&A is Heating Up: Why Financial Institutions Must Act Now to Build Market Visibility
After two years of subdued activity, the M&A market is waking up. Recent indicators from the latter half of 2024 show clear signs of a rebound, signaling that now is the time for financial institutions to position themselves for the opportunities ahead.
From megadeals to sector-specific activity, the data paints a promising picture. Yet, waiting for confirmation of a full-blown surge is a costly mistake. Financial institutions in the dealmaking space that delay investment in marketing and communications risk being overshadowed by competitors already working to establish their presence. The time to act is now.
The Market is Turning: Evidence of a Rebound
The global M&A landscape has been shaped by a tumultuous few years. In 2021, deals hit record highs, only to decline sharply as interest rate hikes, geopolitical uncertainty, and economic challenges took hold. By 2023, global M&A activity had dropped to $3.2 trillion, its lowest level in a decade. But 2024 is proving to be a turning point.
- Megadeals on the Rise: Large-scale transactions have returned with a vengeance. In the first half of 2024, large global M&A deals reached a two-year high, according to S&P. Companies such as Omnicom (Interpublic Group) and Novolex (Pactiv Evergreen) are driving activity, with recent deals valued at $13 billion and $6.7 billion, respectively.
- Private Equity Activity Rebounding: EY’s Deal Barometer reports that U.S. private equity deal volumes have increased by 16% in 2024, following a contraction of 15% the previous year.
- Sector-Specific Resurgence: The logistics sector, for example, has seen significant deal activity as market stability returns. Notable transactions include DSV’s $15.9 billion acquisition of DB Schenker and UPS’s sale of Coyote Logistics for over $1 billion.
Wall Street anticipates this momentum continuing into 2025, with political stability post-election and economic clarity creating strong conditions for renewed confidence. Yet, firms that wait for definitive proof of a boom will find themselves playing catch-up.
Why Waiting is Risky
Markets are cyclical, and history tells us that a downturn is often followed by a surge in activity. The challenge for financial institutions lies in preparing for the upswing before it’s fully visible.
The sharp recovery in deal announcements and the resurgence of private equity activity point to pent-up demand in the market. Private equity firms are under pressure to deploy capital, while corporations are eager to divest non-core assets. These dynamics, combined with more favorable economic conditions, suggest that 2025 will bring a significant uptick in M&A deals.
However, by the time this surge is all but confirmed, it will be too late to build the brand recognition and market positioning needed to capitalize on it. Firms that fail to act now will find themselves overshadowed by competitors who were proactive during the slower period.
Marketing and Communications: Your Competitive Edge
In the evolving M&A landscape, marketing and communications are critical to staying ahead. Even in a quieter market, decision-makers and clients are actively consuming information, assessing potential partners, and planning their strategies. Visibility now means being top-of-mind when the market heats up.
To craft effective messaging and positioning, financial institutions should focus on the Four P’s: Predictive, Prescriptive, Provocative, and Prudent.
- Be Predictive: Use your expertise to anticipate market trends and share insights that resonate with your audience. Highlight key data points, such as the resurgence of megadeals, to position yourself as a thought leader.
- Be Prescriptive: Offer actionable solutions to the challenges your clients face. Help them navigate uncertainty with clear, strategic advice that aligns with their goals.
- Be Provocative: Differentiate yourself by taking a bold stance on market developments. Raise considerations that others may not have thought of yet, and provide a unique perspective.
- Be Prudent: Ensure your messaging is accurate and relevant, providing value while remaining aligned with your brand’s reputation.
Audience-First Strategies for M&A Success
At Bliss, we start by understanding your audience—who they are, where they consume information, and what keeps them up at night. By tailoring your messaging to their needs, we ensure that your marketing and communications efforts resonate and drive results.
From media relations to thought leadership and sales-driven Account-Based Marketing (ABM), our strategies are designed to help financial institutions engage stakeholders meaningfully and build brand equity that lasts.
Don’t Wait for the Floodgates
Financial institutions have a unique window of opportunity to prepare for the next M&A boom. The recent uptick in activity is a clear signal: the market is turning, and those who act now will be best positioned to capitalize on future opportunities.
Investing in marketing and communications during slower periods is about playing the long game. By building your brand now, you ensure that your firm is ready to seize the moment when deal-making accelerates. Waiting for certainty isn’t a strategy—it’s a missed opportunity.
By Miles Hill
Photo by EL Evangelista via Pexels
Ready to Get Started?
At Bliss, we specialize in helping financial institutions craft impactful marketing and communications strategies tailored to the ever-changing M&A landscape. Let’s talk about how we can help your firm stay ahead and succeed in 2025 and beyond. Reach out to me at mhill@theblissgrp.com, or our Financial Services Co-Leads, Reed Handley (rhandley@theblissgrp.com) and Greg Hassel (ghassel@theblissgrp.com).
