From Wall Street to Main Street: Stephens co-CEO on the outlook ahead

Company Overview - Stevens, Inc. is a family-owned and privately held boutique investment bank that has seen significant growth, increasing from 120 employees to nearly 1500 under previous leadership [3] - The company has reported a strong year, with a 24% increase in the number of M&A transactions advised on, and the dollar volume of transactions more than doubled compared to 2024 [4] Market Performance - The wealth management and insurance brokerage segments are performing well, providing a stable revenue stream alongside the more cyclical M&A and investment banking activities [6] - The current market environment is characterized by a strong performance, attributed to pro-growth deregulation policies and increased market clarity compared to earlier in the year [8] M&A Activity - There has been a notable uptick in M&A activity, particularly involving family-owned businesses selling to larger strategic firms, which has positively impacted fees [9] - Despite a decrease in pitch invitations, the overall sentiment regarding M&A remains optimistic, with expectations for continued strength in the sector [10][11] IPO Market - The IPO market has shown improvement, with the current year being the strongest since 2020-2021, driven more by fundamentals than speculative trends [11][12] - The average trading price of the 2025 IPO cohort is now 30% above the offering price, indicating a healthier market compared to previous years [13][14] Economic Outlook - The economic outlook appears strong, with expectations for interest rates to decrease by the end of the year, which could benefit both public and private markets [24] - There are mixed signals in the economy, with a weak labor market contrasted by rising consumer spending and investment from companies [25]