Headwinds from persistent inflation, geopolitical tension, pandemic-induced supply chain issues, lower valuations and a looming recession have cooled global M&A activity from the record setting pace of 2021 and early 2022. The financing market for leveraged buyouts seized up as interest rates rose, forcing private equity firms to either write larger equity checks or abandon takeover plans.
Dealmakers knew that the activity levels were unsustainable and that a correction was inevitable, and now expect a slow path to recovery through 2023, but there are signs of optimism. Well-capitalized strategics are still looking for deals that are important for their long-term business strategy. Strategic transactions that augment vertical integration and are small enough to be achievable in this environment can create opportunities for smart dealmakers. Companies conducting portfolio reviews will create opportunities to divest and redeploy capital into opportunities that create value through new technology, talent and ESG capabilities.
Where will successful dealmakers find opportunity? What sectors will be a bright spot as the market recovers? What type of deal structures and financing options are favorable in the current market conditions? How will regulatory uncertainty impact the SPAC market? What does the future of the mega-deal look like? How is insurance being used to mitigate risk in this turbulent environment?
Join The Deal, IMN and a roster of senior corporate executives, private equity and institutional investors, and corporate advisers for The Deal Economy 2023: Predictions and Perspectives on June 6th in New York City. This one-day, in-person conference explores the opportunities, obstacles, and risks dealmakers face in the current environment and how to navigate through them.
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