Accounting and Tax Preparation

This segment is comprised as services such as auditing accounting records, designing accounting systems, preparing financial statements, developing budgets, preparing tax returns, bookkeeping, billing, and processing payrolls.

Asset Management

In this segment, companies manage the financial assets of corporate, institutional, and individual clients. Their main services include portfolio management and investment advice.


Companies in this segment accept deposits and make commercial, industrial, and consumer loans.


Companies in this segment act as agents to sell insurance policies and annuities underwritten by insurance carriers.

Private Equity

Private equity is a class of assets that consists of equity securities and debt in companies that do not publicly trade on a stock exchange. These types of investments are typically made by private equity firms, venture capital firms, or angel investors.

Venture Capital

Companies in this industry invest capital in new business ventures. These companies provide money to new, rapidly growing companies with new products or services that appear to be promising in exchange for equity in the company.

The Financial Services industry is Fragmented. The production in this industry is divided among a few different companies, however, no single firm has large enough share of the market to be able to influence the industry's direction or price levels.

Primary Demand Drivers

  • Consumer income
  • Wealth
  • Demographics

Profitability Drivers

  • Effective marketing

From the Blog Blog RSS

In the first eight months of 2021, global M&A activity has grossed $3.6 trillion, the highest mark at this point in the year since at least 1995, when Dealogic started keeping records. This unprecedented volume of activity has been aided by low interest rates, soaring stock prices, and executives’ ability to address the imperfections in their business exposed by the pandemic. The U.S. alone accounted for $2.14 trillion worth of M&A deals this year, while Europe and the Asia-Pacific accounted for $657 billion and $620 billion, respectively. This wave of deal-making has Wall Street setting records as well, as deal advisory revenue has reached new heights for multiple investment banks. It’s no surprise that Goldman Sachs is the best performing stock in the Dow this year, up 56%.

One of the most common ways a private company can generate capital for its business is through issuing equity (i.e. going public).  This is typically performed through an initial public offering (IPO).  An IPO is a two-step process, where a company issues stock in the primary market to institutional investors, after which shares are traded on the secondary market to retail investors.


  1. SelectUSA (Date Accessed: 6/1/2017)