The pandemic froze up merger and acquisition activity, but big U.S. players are cementing their position atop Swiss league tables.

Investment banking division (IBD) dealmakers are experiencing hard times: the coronavirus outbreak practically froze all international activity. Condemned to idleness, IBD bankers watched a year’s worth of pipeline deals vanish. Between March and June, transaction volume globally collapsed by 57 percent compared to the previous year - with Europe tumbling 42 percent.

J.P. Morgan's head of Switzerland Nick Bossart said he now sees signs of improvement. «Companies are still waiting to see the second-quarter figures of possible takeover targets to better assess their condition, » the long-standing investment banker told journalists.

Goldman Sachs Leads

Four months after the pandemic locked down Europe and large parts of the U.S., companies in many sectors feel a sharp rise in pressure to consolidate – meaning significantly more merger activity is expected in the coming months. Specifically, «We expect a strong rebound in M&A for Switzerland and Europe in 2021,» Bossart said.

If and when deals materialize, Americans will be advising them – at least according to Dealogic data. In terms of volume year-to-date, Goldman Sachs leads the ranking within Switzerland with $10.5 billion.

The U.S. powerhouse is followed by Bossart's team at J.P. Morgan in second place, then Citigroup, Bank of America, and Morgan Stanley. The first European institution, Rothschild, doesn't appear until sixth place. Credit Suisse, the only Swiss bank in the top ten, Credit is ranked seventh.

Crisis Vs. Strategic Issues

Companies have begun refocusing on strategic issues in the last four weeks, and away from the acute phase of the crisis, Bossart said. This means investment bankers will fan out again – despite a probable second pandemic wave and travel restrictions both by governments as well as those imposed by companies themselves.

Bossart said J.P. Morgan's experience with the first shutdown prepared his bankers well for such a scenario: for example, the bank can now handle an entire due diligence process for an M&A transaction through online channels. However, he notes, «Face-to-face meetings are still indispensable at the decision-maker level, and in negotiations involving private equity and major investors.»