What is M&A and why does it create investment opportunities?

M&A stands for Mergers and Acquisitions, which happens when companies combine through purchases, mergers, or consolidations. Investment banks and advisory firms make money by helping companies find deals, negotiate terms, arrange financing, and navigate regulations. When M&A activity increases (as it is now), these financial firms can earn substantial fees, potentially boosting their revenue, profits, and stock prices.

What's the difference between investment banks and advisory firms in this collection?

Investment banks like Goldman Sachs and JPMorgan offer a wide range of financial services including M&A advisory, but also trading, research, and financing. Independent advisory firms like Evercore and Moelis focus primarily on providing merger advice without the potential conflicts of interest that can arise at larger banks. Both types earn fees when deals close, but pure-play advisory firms may have more direct exposure to M&A activity trends.

How do private equity firms like Blackstone and KKR fit into the M&A boom?

Private equity firms play two important roles in the M&A boom. First, they're often buyers, using investor funds to purchase companies they believe they can improve and later sell at a profit. Second, they provide financing for other companies' acquisitions through private credit funds. When M&A activity increases, these firms can find more investment opportunities and earn greater management fees and performance incentives from their investors.

What does "Potential Profit %" mean for these stocks?

Potential Profit % indicates the estimated upside for a stock based on analyst price targets compared to its current trading price. For example, if a stock is currently trading at $100 and analysts have an average price target of $120, the Potential Profit would be 20%. This metric gives you an idea of how much growth experts believe might be possible, though it's important to remember these are estimates and not guarantees.

Why are advisory fees important for companies in this collection?

Advisory fees are the payments companies receive for providing guidance on mergers, acquisitions, and other financial transactions. These fees typically represent a percentage of the total deal value—often between 1-2% for billion-dollar transactions. With global deal values increasing by over 15%, advisory firms stand to earn significantly more revenue. These fees are especially valuable because they require minimal capital investment compared to other financial services, potentially leading to higher profit margins.

15 handpicked stocks

The Dealmakers: M&A Boom

A carefully selected group of financial institutions driving today's surge in mergers and acquisitions. These companies are the architects behind billion-dollar deals, earning significant fees as corporate dealmaking accelerates.

Han Tan | Market Analyst

Published on June 30

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Goldman Sachs Group, Inc., The

Current price

$779.44

As a top-tier global investment bank, Goldman Sachs is a primary beneficiary of increased M&A activity, earning significant fees from its advisory ser...

As a top-tier global investment bank, Goldman Sachs is a primary beneficiary of increased M&A activity, earning significant fees from its advisory services on major transactions.

Evercore Partners Inc

EVR

Current price

$331.70

Mentioned in the article, Evercore is a prominent independent advisory firm that directly profits from a boom in M&A deal flow.

JPMorgan Chase & Co.

JPM

Current price

$307.73

JPMorgan's extensive investment banking division is perfectly positioned to capitalize on the M&A surge through both advisory roles and providing deal...

JPMorgan's extensive investment banking division is perfectly positioned to capitalize on the M&A surge through both advisory roles and providing deal financing.

Morgan Stanley

Current price

$155.76

Bank of America Corp.

BAC

Current price

$50.48

Moelis & Company

Current price

$68.06

Join Nemo FREE today and unlock every stock.

It only takes 60 seconds.

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

≈

In 12 months it might be worth:

$1,000.00

+2.92%

≈

About This Group of Stocks

Our Expert Thinking

Wall Street is seeing a resurgence in high-value mergers and acquisitions, especially in technology and healthcare. This collection focuses on the financial institutions that facilitate these deals and earn substantial fees from this activity, positioning them to benefit directly from continued corporate confidence.

What You Need to Know

These companies represent different aspects of the dealmaking ecosystem – from elite investment banks and independent advisory firms to private equity giants. They generate revenue through advisory fees, financing interest, and transaction services as global deal values climb by over 15%.

Why These Stocks

This selection includes premier names like Goldman Sachs and specialized firms like Evercore that directly profit from increased M&A activity. These companies are strategically positioned at the center of corporate transactions, making them potential beneficiaries of this cyclical boom in dealmaking.

Group Performance Snapshot

3.07%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 3.07% over the next year.

9 of 15

Stocks Rated Buy by Analysts

9 of 15 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

💼

Wall Street's Fee Machine

These firms earn massive fees on every billion-dollar deal. With global M&A values rising over 15%, they're positioned at the center of a potential revenue windfall.

📈

Riding the Megamerger Wave

Corporate confidence is driving larger, higher-value transactions, especially in resilient sectors like technology and healthcare. These are the companies orchestrating those headline-making deals.

🔍

Hidden Deal Opportunities

Beyond the giant investment banks, this collection includes specialized advisory firms and private equity players that often fly under the radar while profiting enormously from the dealmaking surge.

Get the full story on this Basket. Read our detailed article on its risks and potential.

Read Full Insight

Why Invest with Nemo Money?

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

Discover More Opportunities

Gold Miners (Record High Rally) Investment Guide

Gold prices have reached a record high as concerns over a U.S. government shutdown and potential interest rate cuts drive investors to seek safe-haven assets. This trend creates a potential investment opportunity in the companies that explore for and produce gold and other precious metals.

Government Shutdown Impact: Defensive Stocks Explained

A U.S. government shutdown has been triggered by a congressional budget impasse, creating economic uncertainty. This theme focuses on companies in defensive sectors that may prove resilient to the resulting market volatility and disruptions in federal spending.

Zillow Redfin Competitors | Market Disruption

The Federal Trade Commission is suing Zillow and Redfin, alleging their rental listing deal violates antitrust laws. This legal challenge could disrupt the online real estate market, creating opportunities for competing platforms to capture market share.

Frequently Asked Questions

Everything you need to know about the product and billing.