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Blogs - The M&A Perspective

Regulatory Flood in the Finance Industry – Prompting a Wave of Asset Deals?

04.03.2014 – With an abundance of new laws and regulations (Basel III, AIFM, MiFID, FATCA, FINFRAG, to name just a few) on the horizon or already in force, the cost of doing business in the finance industry, in particular in the Swiss asset management and banking field, is increasing significantly, and there is no sign that this will change soon.

Compliance with these new laws and regulations is time-consuming and costly. As a consequence, smaller and medium sized banks and finance institutions will have to refocus their activity and sell off parts of their business which become unattractive or even unprofitable for them. For a number of reasons, M&A deals in the finance industry often take the form of asset deals. The ongoing regulatory activism has led to a "revival" of the asset deal in 2013 and we expect an increased level of M&A activity, mostly in the form of asset deals, in the Swiss finance industry in the near future.