Global dealmakers: M&A outlook 2023

Baker Tilly’s annual M&A market update, produced in conjunction with M&A intelligence firm, Mergermarket, revealed that the last 12 months have been challenging for global dealmakers

Many have had to reset expectations and recalibrate risk appetite as macroeconomic headwinds and geopolitical uncertainty put the brakes on deal activity. Inflationary pressures have likewise weighed on decision-making. The full report drills down into the details of last year’s M&A market sand explores the outlook for 2023. Key highlights include:

• 52% of respondents say global M&A will increase in the year ahead.
• 46% say rising inflation and geopolitical challenges are actually making them more likely to engage in cross-border M&A.
• 59% say they are looking for M&A opportunities in Western Europe, and 46% say they have their sights set on North America.
• 69% say digital transformation will be a primary driver of cross-border M&A.
• 55% say their most recent mid-market deal met or exceeded expectations.
• 45% say ESG considerations factor into every deal–and 32% say they factor it into mostdeals.
• 61% say TMT is the most attractive sector for deals, followed by industrials and chemicals (51%).