As M&A recovers, the new breed of mid-market advisory boutiques will be put to the test. Their low cost base means they do not need to work on many mandates to survive. However, with new business emerging the, focus will be on managing growth.

Mid-market investment banks could be an unlikely source of deals in 2004. Despite the continuing weakness of the dollar, the higher rating of North American companies and the fact that they have emerged from the downturn quicker than their European counterparts mean they are on the acquisition trail.