It is tempting to see the decline of mega-deals as a broader symptom of a challenging market, but global mid-market M&A had a record year for volumes in 2022, and only saw a minor decline in value. We can see that mid-market M&A continues to be a sweet spot for dealmakers, while dealmakers are highly attuned to looking beyond their domestic borders for opportunities.William Chapman, Principal
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Global dealmakers: M&A outlook 2023
Baker Tilly International’s annual M&A market update, produced in conjunction with M&A intelligence firm, Mergermarket, highlighted the challenging conditions faced by global dealmakers over the past year. Many had to adjust their expectations and reassess their risk tolerance due to macroeconomic challenges and geopolitical uncertainties that slowed down deal activities. Decision-making was further complicated by inflationary pressures. The comprehensive report delves deep into the specifics of the previous year's M&A markets and offers insights into the outlook for 2023.
Key highlights include:
- 52% of respondents anticipate an increase in global M&A activity in the coming year.
- 46% believe rising inflation and geopolitical challenges are driving them toward cross-border M&A engagements.
- 59% are actively seeking M&A opportunities in Western Europe, while 46% have their focus on North America.
- 69% identify digital transformation as a primary catalyst for cross-border M&A deals.
- 55% reported that their recent mid-market transactions either met or exceeded their expectations.
- ESG considerations are integral to every deal for 45% of respondents, and 32% incorporate it into most of their deals.
- 61% find the Technology, Media, and Telecommunications (TMT) sector most attractive for potential deals, followed closely by industrials and chemicals, favored by 51%.
For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.
This article was originally published by Baker Tilly International.
