BCG – IB Advisory Trends, 2024

The outlook for IB Advisory Trends in 2024 is positive, with a rebound in dealmaking expected after a slowdown in 2023. The rise of private markets has impacted the traditional IPO market, with more focus on serving sponsors in exit strategies. Despite lower CEO sentiment for dealmaking and diverging valuation expectations, corporates are expected to lead the way in dealmaking in the coming year. Banking players are making strategic moves to enter private markets, with many share prices trading below book value. IB divisions may pivot towards capital-light models, focusing on select asset classes or client segments, with a shift towards M&A advisory over traditional lending models. Boutiques and independent advisory firms are gaining shares from Tier II banks, with small firms becoming M&A targets for larger IBs. Executives are considering ways to bolster M&A capabilities as a high RoTE activity for banks.