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\u2019t make the recent surge in M&A activity surprising.<\/p>\n\n\n\n
In fact, even in late 2020 Bloomberg reported: \u201ca 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.\u201d<\/p>\n\n\n\n
The mortgage and financial industries have seen quite a bit of recent activity, such as New Residential\u2019s<\/a> acquisition of Caliber Home Loans, and right on the heels of that transaction Flagstar Bancorp\u2019s<\/a> stock reportedly surged after a buyout deal with New York Community Bancorp valued at $2.6 billion. It\u2019s safe to say those predictions were on the mark. Perspective, as in all things, is key.<\/p>\n\n\n\n