Though the top-end of the M&A market was notably impacted by the tighter lending, inflationary pressures and longer deal timelines throughout 2022, with lower valuations opening more options for funding, the midmarket offered a safe harbour for those looking to transact.
With the second half of 2022 plagued with uncertainty, deal activity and fundraising dropped to pre-pandemic levels after 2021’s boom year. This was largely due to external influences – war in Ukraine, an energy crisis, high levels of inflation, expensive and difficult to access capital – all factors that have followed us into 2023.
These influences had a direct impact on M&A and investor appetite, with 2022 seeing a reduction in M&A value by 37% worldwide (1) and total assets under management estimated to have declined by more than 15%. (2) This does however, reflect a return to pre-pandemic deal volumes (as illustrated by the graph below), with 2022 reflecting a correction of the rocketing valuations seen throughout 2021, where pent-up demand was released following 2020’s COVID-19 fuelled uncertainty.
(1) ‘Dealmakers brace for slow 2023 recovery after global M&A sinks’, Reuters, December 2022
(2) ‘Moody’s changes to positive from stable the outlook on Eurasian Bank’s ratings’ Moody’s, December 2022
Read more below (PDF 11 pages)
With the second half of 2022 plagued with uncertainty, deal activity and fundraising dropped to pre-pandemic levels after 2021’s boom year. This was largely due to external influences – war in Ukraine, an energy crisis, high levels of inflation, expensive and difficult to access capital – all factors that have followed us into 2023.
These influences had a direct impact on M&A and investor appetite, with 2022 seeing a reduction in M&A value by 37% worldwide (1) and total assets under management estimated to have declined by more than 15%. (2) This does however, reflect a return to pre-pandemic deal volumes (as illustrated by the graph below), with 2022 reflecting a correction of the rocketing valuations seen throughout 2021, where pent-up demand was released following 2020’s COVID-19 fuelled uncertainty.
(1) ‘Dealmakers brace for slow 2023 recovery after global M&A sinks’, Reuters, December 2022
(2) ‘Moody’s changes to positive from stable the outlook on Eurasian Bank’s ratings’ Moody’s, December 2022
Read more below (PDF 11 pages)
Laurent Leloup
- Fondateur Finyear, une publication du groupe Calmon Partners.
- Fondateur et CEO Leloup Partners (Web3 M&A, ICO Advisory)
- Formateur (blockchain, crypto, web3) entreprises, organisations et administrations (Ministère des Armées)
- Auteur de Blockchain, la révolution de la confiance
"La blockchain n’est pas la révolution tant annoncée, elle n’est que l’outil d’un monde lui-même entré en révolution"
- Traducteur de La Blockchain pour les Nuls et de Au cœur du bitcoin.
- Fondateur Finyear, une publication du groupe Calmon Partners.
- Fondateur et CEO Leloup Partners (Web3 M&A, ICO Advisory)
- Formateur (blockchain, crypto, web3) entreprises, organisations et administrations (Ministère des Armées)
- Auteur de Blockchain, la révolution de la confiance
"La blockchain n’est pas la révolution tant annoncée, elle n’est que l’outil d’un monde lui-même entré en révolution"
- Traducteur de La Blockchain pour les Nuls et de Au cœur du bitcoin.