Financial advisory firms once again seem to be on the move as mergers and acquisitions have started to pick up recently, according to DeVoe & Company, a consulting firm and investment bank.
M&As showed a sharp slowdown at the beginning of the fourth quarter after several years of booming movement, but the trend seems to be reversing itself, David DeVoe, founder and CEO of DeVoe & Company. said at the MarketCounsel Summit held this week in Las Vegas.
The number of transactions for 2022 through Tuesday was 242, compared to last year’s total of 241. Thirty-nine transactions have been posted in the fourth quarter so far, compared to 59 for the same date in the fourth quarter of 2021, DeVoe said.
While this is a 34% decline, the current tally is higher than what the October and November numbers indicated would transpire, according to DeVoe & Company. The firm is now forecasting about 260 transactions for the year, an 8% increase over 2021.
"The prolonged economic and market downturn combined with interest rate increases conspired to drag down M&A momentum," DeVoe said in a statement. “The fourth quarter is tracking at a 34% drop from the same period in 2022. The slowdown to date seems to be 'do it yourself' sellers, as DeVoe & Company and major buyer pipelines continue to be strong."