M&A: Unprecedented Activity in Switzerland’s Financial Center
The engine is roaring – M&A activity has surged this year, creating new opportunities to boost profitability. However, a recent study suggests that the potential gains could be even greater.
M&A transactions in Switzerland declined by 4 percent last year, yet market sentiment remains positive. The driving force behind this optimism is the broader European banking and insurance sector, where a 9 percent increase in deals was recorded in 2024.
While smaller transactions dominated recent activity, larger deals are now coming into focus in Switzerland as well. The integration of Credit Suisse into UBS remains a key topic, as does the potential creation of Europe’s largest asset manager through the merger of Generali and BPCE’s asset management divisions.
Additionally, BNP Paribas’ acquisition of AXA Investment Managers, which is expected to close by mid-2025, is garnering attention. Other notable deals include Swiss Life’s purchase of Zwei Wealth, while Swiss Re is divesting Iptiq to Allianz Direct.
Fintech Crisis Fuels Takeovers
«We are seeing an exceptionally high level of M&A activity in Switzerland’s financial sector,» says Patrick Maeder, Managing Partner at consulting firm Korn Ferry. According to Maeder, this surge is also linked to the downturn in venture capital markets: «The fintech funding crisis is accelerating acquisitions,» he explains.
The main drivers of this trend are consolidation in wealth and asset management and the international expansion of insurance brokers, as foreign players look to gain Swiss market share through acquisitions.
Beyond consolidation, cost pressures and digital transformation are also fueling M&A activity.
Boost for Switzerland’s Financial Center
Despite the challenges, Maeder sees a silver lining: «Acquisitions enhance firms’ investment capacity, which ultimately strengthens Switzerland’s financial hub,» he notes.
The long-term profitability of these deals, however, will depend on how well firms integrate their employees into the M&A process.
A recent Korn Ferry study highlights that intangible assets are playing an increasingly significant role in mergers and acquisitions.
Employee Integration Often Overlooked
The study examines challenges throughout the entire M&A lifecycle, from target selection and due diligence to post-merger integration.
Although 73 percent of leading global firms plan to grow through M&A over the next five years, deal teams remain heavily focused on financial, legal, and operational aspects.
This often leads to leadership misalignment, cultural clashes, and poor change management, all of which can undermine long-term deal success. While 40 percent of respondents consider leadership and cultural issues critical, only 36 percent prioritize intangible assets in their M&A strategy.
HR Experts Need to Be Involved Earlier
Korn Ferry emphasizes that early involvement of HR experts is essential in M&A processes. However, 64 percent of companies do not integrate HR into deal planning, resulting in a lack of expertise and trust.
Additionally, 54 percent of firms struggle with operational and organizational alignment post-acquisition, often leading to delays and value erosion.
By implementing structured talent management, leadership programs, and change management initiatives, companies can minimize friction and unlock greater synergies from their M&A transactions.
