Read more about what’s happening around you under the M&A microscope.
Our M&A Industry Overview
Despite the slowdown in the second half of 2022, deal activity is expected to pick up in 2023, as over 2,000 transactions were announced during 2022 but were not concluded. Moreover, private equity’s involvement in the industry has been relatively stable over the last year, accounting for 18% of all completed transactions. Given that this is in line with the industry’s 5-year average, we expect private equity investors to play a similar role in M&A activity during 2023.
Global deal activity decreased by 11% during 2022 after reaching record highs the year before. While deal activity declined during 2022, deal values increased.
Although deal activity was lower during 2022, it is expected to rebound in 2023 as many transactions that were put on hold last year, are expected to close in the next 12 months. Another positive factor to consider is the involvement of private equity’s (“PE”) in the sector. The investor group was active during 2022, accounting for approximately 24% of all completed transactions during the year with similar activity levels expected throughout 2023.
Despite the slowdown in H2 deal volumes, moderate deal activity is expected in 2023 as over 750 transactions were announced during the year. Private equity’s (“PE”) involvement in the industry presents another positive consideration. During 2022, Private Equity firms accounted for 22% of all completed transactions in the healthcare sector. This was in line with the 5-year average of 23% indicating that the sector remains attractive to professional investors with continued investment expected throughout 2023.