M&A market is bifurcated between the high and low end, says RBC's Vito Sperduto

Core Insights - The investment landscape is seeing a significant increase in large deals, with transactions over $5 billion up by 50% to 70% in the US and globally, while deals under $1 billion remain flat year-to-date [2][3] - Smaller companies are expected to become more active in the M&A space, as they represent attractive acquisition targets for larger firms [4] - The IPO market has shown a resurgence, with September being the most active month for IPOs this year, driven by strong market conditions and a significant amount of capital waiting to be invested [6][7] Deal Activity - Overall deal volume is projected to increase by about 25% this year compared to last year, with a potential 30% increase next year, which could match the record levels seen in 2021 [12] - Smaller companies are benefiting from recent rate cuts, allowing them to borrow at better rates, which may facilitate more acquisitions [10][11] Sector Focus - The energy sector, particularly power and utilities, is highlighted as a strong area for investment, especially in relation to the infrastructure needs for AI development [14]