The financial services industry faces notable complexities such as margin compression, expense, regulatory angst, and the acceleration of digitization. These pressures coupled with the upside for businesses looking to invest in prospects where fees and income streams can produce strong long-term returns, shouldn’t make the recent surge in M&A activity surprising.
In fact, even in late 2020 Bloomberg reported: “a majority of Banks are planning major divestments (of certain divisions and operations), with 87 percent saying they will do so within two years and 60 percent within 12 months.”
Change is the only Constant
The mortgage and financial industries have seen quite a bit of recent activity, such as New Residential’s acquisition of Caliber Home Loans, and right on the heels of that transaction Flagstar Bancorp’s stock reportedly surged after a buyout deal with New York Community Bancorp valued at $2.6 billion. It’s safe to say those predictions were on the mark. Perspective, as in all things, is key.
A recent article in the Harvard Business Review confirmed this trend.
“If your company is undergoing a merger or acquisition, you’re apt to feel anxious. Roughly 30% of employees are deemed redundant when firms in the same industry merge.”
Harness the Power of Change
However, you shouldn’t let the fear of what could be lead the process for you professionally.
The Harvard Business Review article further suggests that researchers have found that employees usually reap great rewards if they embrace the M&A process as a chance for introspection and growth.
“There’s no question that mergers and acquisitions leave many victims in their wake. But you don’t have to be one of them. By proactively evaluating your situation and seizing leadership opportunities created by M&A, you can set your own trajectory.”
If you are eager to take back control of your value proposition within the financial services industry, reach out to us today to explore your best path forward.