Global M&A Industry Trends: 2023 Outlook

With macroeconomic and other headwinds, executives have been pushed back on their heels. Paradoxically, these challenging conditions create opportunities for dealmakers to capitalise on these circumstances and potentially set the foundation to leapfrog competitors.

We therefore believe 2023 will be a year in which transformation and transactions will be at the forefront of CEOs’ value creation strategies, but also one where recessionary fears remain on the top of dealmakers’ minds.

Although M&A tends to slow during times of uncertainty or market volatility, valuations can become more attractive. Overall deal volumes in 2022 were below the record-breaking 65,000 deals in 2021, but they remained 9% above pre-pandemic levels.

The current market conditions suggest we are in a sweet spot for M&A, provided companies have well-thought-out strategies and the financial wherewithal to make transformational deals that will shape their businesses and contribute to longer-term success.

In this year’s Global M&A Industry Trends Outlook, we explain how dealmakers can navigate the many headwinds that exist and achieve value through transformational M&A. From accelerating strategic reviews and portfolio optimisation to seeking growth in other markets and identifying additional sources of value, there is much to be done to support bold moves that could ultimately change the game in a given sector and deliver sustained outcomes.

Commenting on the launch of this year’s outlook, Paul Tuite, PwC Ireland’s Deals Practice Leader, said: “Despite the many uncertainties and risks impacting Ireland’s economy, our recent Irish CEO survey highlights that Irish CEOs are confident about their own businesses. Irish CEOs are also more confident about Ireland's economy than global CEOs are about the global economy which reflects the relative strength of the Irish economy at the moment.”

He continued: “Ireland’s economy remains in a good position. With strong fiscal returns, continued foreign direct investment flows, a thriving export sector, high employment levels and indications that inflation may be easing, there are solid reasons why six out of ten Irish CEOs are not planning to delay M&A deals in 2023. They continue to look for growth opportunities to secure sustainable businesses for the future.”

Ultimately, we expect 2023 to be an exciting time for M&A. But as business leaders seek to surmount the varying challenges, M&A—particularly portfolio optimisation—will be a crucial tool to help them reposition their businesses, bolster growth and achieve sustained outcomes over the long-term.