Evaluating the Buyer’s Shares

Small-cap bank stocks delivered a so so 2025. Despite solid earnings growth, small-cap bank valuation multiples remain below long-term averages, reflecting a gap between bank performance metrics and investor sentiment. Large-cap banks continued to outperform small-caps, as well as the broader market, due to strong capital markets activity.

Demographic shifts underlie the long-term market opportunity for medical device manufacturers. While efforts to control costs on the part of the government insurer in the U.S. (and elsewhere) may limit future pricing growth for incumbent products, a growing global market provides domestic device manufacturers with an opportunity to broaden and diversify their geographic revenue base. Developing new products and procedures is risky and usually more resource intensive compared to some other growth sectors of the economy. However, barriers to entry in the form of existing regulations provide a measure of relief from competition, especially for newly developed products.

Mercer Capital was proud to sponsor Bank Director’s 2026 Acquire or Be Acquired conference, where the prevailing mood was one of cautious optimism for the banking industry. While M&A tailwinds are building, discussions emphasized that growth in 2026 is not a binary choice between buying or selling, but a broader strategic exercise grounded in disciplined capital allocation, technology-enabled execution, and scenario planning. Banks that align strategy with execution, whether through acquisition or improved organic performance, will be best positioned to create long-term franchise value.