Global Interest Driving Financial Services M&A in 2025

In 2025, the financial services sector is predicted to be a key player in the mergers and acquisitions (M&A) game. Legal experts from Herbert Smith Freehills, Andrew Rich, and Tony Damian, believe that this sector, along with energy and tech, will see significant activity amidst company portfolio refinements and regulatory adjustments.

Despite past pessimism, 2024 showcased that substantial deals are shaping the market, and 2025 is expected to bring even more across various sectors. Hungry corporates, private equity firms, and super funds are gearing up to drive deal-making to new heights.

Although some political uncertainties loom, such as the US Administration’s new approach and an upcoming Australian federal election, the duo remains optimistic about the opportunities in the M&A landscape. They anticipate a surge in interest fueled by technology advancements and the ongoing energy transition, specifically boosting the financial services sector.

Rich and Damian highlighted the potential for a dynamic year in cross-border M&A, as overseas interest in Australian companies continues to rise. Recent examples include Bain Capital’s bid to acquire Insignia Financial, showing a trend of US-based players eyeing opportunities Down Under.

Looking ahead, the financial services sector is poised for a resurgence, driven by factors like portfolio enhancements, regulatory adaptations, and the pursuit of additional skills and resources. With interest growing globally, Australian companies may find themselves at the center of a bustling M&A scene in the months to come.