U.S. bank mergers are being approved at a speed few dealmakers have seen in their careers...
Regulators under President Donald Trump's administration have cut the average approval timeline to just over four months. That's the fastest pace in more than three decades – down significantly from the nearly seven months it took under Joe Biden's administration.
This change has unlocked a nationwide wave of bank deals, with 2025 set to be the busiest year for bank mergers and acquisitions (M&A) since 2021.
Already, nearly 150 mergers worth roughly $45 billion have closed this year.
This boom has been a windfall for acquirers and their targets... However, another group has benefited even more directly.
Today, we'll look at this straightforward and often overlooked way for investors to capitalize on the surge in bank M&A.
When bank deals accelerate, advisory fees scale...
Every major transaction funnels a slice of a deal's value to an investment-bank adviser.
These aren't the kinds of banks that are merging. They don't typically hold deposits or give out personal loans. Rather, they advise companies on big transactions and, in some cases, help line up financing.
Across recent bank deals, investment-bank advisory fees have averaged about 1% of the merger value. And when deal sizes and volumes rise... fees follow.
Fifth Third Bancorp's (FITB) recent acquisition of fellow regional bank Comerica is a good example of this...
In the deal, investment bank Goldman Sachs (GS) is serving as the exclusive financial adviser to Fifth Third. It stands to collect more than $70 million in fees. Meanwhile, J.P. Morgan Securities will receive roughly $50 million for advising Comerica.
That's $120 million in advisory fees on a roughly $11 billion deal.
It's a similar story all across the market...
In October, Huntington Bancshares (HBAN) announced that it would acquire Cadence Bank (CADE) for $7.4 billion. Boutique investment bank Keefe, Bruyette & Woods will earn more than $40 million advising Cadence, while Evercore (EVR) is slated to receive about $35 million advising Huntington.
Investment-advisory firms love periods like this. Their revenue scales directly with merger volume... as long as they have enough senior bankers to service the pipeline.
That's why, when the deal calendar is packed, headcount becomes crucial. Firms that expand early tend to capture the most share.
And if you look at hiring trends, you'll see exactly who's preparing for the coming surge...
Financial adviser Lazard (LAZ), for instance, added 20 new managing directors this year as of the third quarter. That's already above the company's annual target of 10 to 15 new directors.
Moelis (MC) has also been building aggressively. It just recruited two senior advisers from Rothschild to position itself ahead of expected deal flow.
These moves are a sign that the major investment advisories see the next leg of the M&A cycle forming... and want capacity in place before the rest of the market reacts.
Advisers are telling investors where the next wave of profits will come from...
Hiring is a direct expression of confidence. The investment-advisory firms adding the most senior bankers today are preparing for a surge in fees tomorrow.
And folks who track hiring rates and internal movement across these companies will be able to spot the ones that are most likely to outperform as bank M&A takes off.
So savvy investors should watch investment advisers closely... as the bank-consolidation wave is already well underway.
Regards,
Joel Litman
December 9, 2025
P.S. 2025 has been a banner year for big deals... from UnitedHealth and Amedisys... to Capital One and Discover... and now Netflix and Warner Bros.
All told, roughly $2 trillion in deals have already taken place. And I expect that to continue through the end of this month, thanks to a massive convergence of catalysts – political, economic, and calendar.
In fact, I've set my sights on a tiny stock that I'm confident could be bought out before year-end. When the story breaks – whether that be tomorrow or December 31 – this stock could see tremendous upside.
To get all the details, and learn the name of what I believe will be a "one-day double," click here.
