Across the different bits of financial services – such as fund management, broker-dealers, insurance, and trading systems – mergers and acquisitions fell sharply in 2009. But Freeman & Co outlines 10 drivers that should make this a busier year for dealmaking:

“1. Banks and insurance companies continue to assess whether their asset management units
are core to their business, especially those that have stand alone brands or are in non-core
markets

2. Large transformational asset management deals will diminish, but deals in the $3-30 billion
AUM range will increase from current lows

3. Broker-dealer consolidation will continue in 2010 as firms look for combined efficiencies as
well as revenue and income growth opportunities in a tough operating environment

4. Sub-scale alternative trading systems and dark pools will be consolidated by their larger
competitors or rolled up into exchange-backed or bank-backed platforms