M&A Outlook 2023
Opportunity amidst uncertainty
We examine key legal and regulatory developments driving and shaping M&A around the world
Following a record breaking 2021, 2022 proved to be a more challenging year for global M&A with a 37 percent decrease in total deal value and the total number of deals reducing by 17 percent with the second half of the year seeing a considerable drop in activity (Source: Refinitiv). Many see the cause of the slowdown as being the result of macroeconomic factors including the war in Ukraine, inflationary pressures and interest rate rises, all of which have had an impact on market sentiment, valuations and the cost of debt financing deals. However, the picture is complicated and nuanced and, whilst total global deal values have had their biggest decline since 2001, a significant number of deals were announced with deal volumes in excess of pre-pandemic levels. In the past year, Norton Rose Fulbright has advised on many of the most significant and complex deals around the world across a wide variety of sectors. This has given us a unique vantage point not only to look at drivers today, but also the future direction of M&A in the years ahead.
We have invited our international team of lawyers to contribute articles on the trends they are seeing, and expect to see, in markets around the world over 2023 and beyond. Below you can browse and read our latest insights which we will continue to add to throughout the year. If you wish to receive an alert when we publish new articles please register your interest here.
We hope you find our articles both interesting and of practical use. Should you wish to discuss the topics covered please contact any of our lawyers listed below.
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M&A trends in the life sciences and healthcare sector
Due to the multiple ongoing crises we are currently dealing with, stakeholders and key decision makers operate in an environment characterised by volatility, uncertainty, complexity, and ambiguity. If met with resilience these quite difficult times still provide chances and opportunities though.
Navigating distressed M&A
Investors and advisers have been poised for a flood of distressed M&A transactions since the early days of the pandemic.
Bridging the valuation gap in times of uncertainty
Rising interest rates, long-lasting inflation, supply chain uncertainty, regulatory changes, pressure for business transformation, geopolitical instability, economists predicting a global recession – dealmakers are increasingly confronted with extremely challenging conditions that affect their M&A-roadmaps.
M&A trends in Asia: The outlook for 2023
Asia has not been immune from the global macroeconomic headwinds that have built steadily over the course of 2022, and is now also experiencing rising inflation and interest rates and tightening monetary policy, albeit perhaps not to the level seen in the West.
Tech M&A: A return to pre-pandemic levels?
Following a surge in M&A activity in 2021 and the first quarter of 2022, deal making in the Tech sector slowed significantly through the remainder of 2022.
The outlook for banking sector M&A in 2023
There continues to be longstanding speculation in the market about when a next big round of consolidation in the banking sector might occur.
ESG in Canadian M&A and Shareholder Activism: Perspectives for 2023
Despite somewhat shaky economic conditions and geopolitical upheaval on the world stage, M&A activity in Canada was relatively steady in 2022.
European Private Equity: A broadly positive outlook despite economic headwinds
After a record-breaking year in 2021, 2022 demonstrated that the years of predictable growth in the private equity industry have, at least temporarily, come to an end.
M&A in the Middle East builds on active 2022
Proving its resilience and ability to weather political headwinds, the Middle East region saw a particularly active year for M&A during 2022, with several deal-makers citing pre-pandemic levels of activity.
Merger control in Europe: Will the increased scrutiny of deals impact M&A in the year ahead?
2022 saw the rhetoric about “killer acquisitions” made concrete. Both the European Commission (EC) and German Federal Cartel Office (FCO) fought to defend their ability to review acquisitions of entities with limited EU presence, revenue and customers, with the EC’s jurisdiction confirmed by the EU’s General Court (GC), and the FCO losing at first instance.