Utah unicorns drive investment banking activity.

• Position: BofA SECURITIES

Despite nationwide economic headwinds in 2020, the Utah business environment has remained relatively strong. From 2015 to 2020, Utah GDP grew at an annual rate of 3.4%, outpacing the U.S. growth rate of 1.9% for the same period. (1) The October 2020 jobless rate was 4.1%, versus a nationwide figure of 6.9%, (2) while the September 2020 Index of State Economic Momentum, which tracks growth in personal income, employment and population, ranked Utah second in the U.S.

An innovative business environment yields deal-making

Much of this impressive performance is driven by Utah's status as a global innovation hub, with almost 20 companies in the state achieving unicorn status over the last three years. From raising early-stage venture capital, to pre-IPO financing, IPOs and M&A, business activity has remained vibrant. AUM raised by Utah-based venture firms grew from $400 million in 2005 to $2.7 billion in 2019, an annual growth rate of 15%, double the figure for the U.S. as a whole over the same period. (3) Equity capital market volumes grew from $361 million in 2010 to $1.9 billion in 2019, while M&A generated around 180 transactions totaling $19.6 billion in disclosed transaction volume during 2020. (4)

Higher transaction volumes and complexity call for local support

Bank of America has served the local business community for over 30 years, providing Business Banking and Commercial Banking, plus private wealth management through Merrill and Bank of America Private Bank. Responding to increased demand from high-growth, nationwide and globally focused companies, BofA Securities recently added the first "bulge-bracket" investment banking group in Utah. Clients can access services and advisory around private/public capital, M&A, IPOs and Special Purpose Acquisition Companies (SPACs). The team has already made an impact--Utah-based companies like ICON, Vivint, Ancestry, Overstock and FlealthEquity have tapped our expertise.

Positioning for accelerated activity in 2021

The expectation of an even more robust business environment in 2021 remains strong. Pent-up demand is likely to be fulfilled after transactions were put on hold last year, and the overall sentiment for economic growth is positive relative to the volatility of 2020. For more business...