On Tap for Banks: $8.9 Billion in M&A Fees

The backlog of merger-and-acquisition deals has hit another record, according to analysts at Merrill Lynch. In a report published Wednesday, Merrill said that the backlog of investment-banking fees for deals that have been announced, but not completed, stood at $8.9 billion at the end of September, up 5 percent from August — also a record month for fee backlogs — and more than 50 percent above last September’s level.

While the backlog means that investment banks are cued up for big payouts once the deals go through, there may be a dark cloud on the horizon: The number of announced deals worldwide was down by 32 percent last month from September of 2005. If the decline continues, it suggests that the lucrative deal pipeline may start to empty out.