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Read our latest Insights
With 40+ years of experience and 1000+ businesses served across diverse industries, we continue to drive innovation, efficiency, and sustainable growth for organizations worldwide.
We're a leading provider of essential business services to support the global progress of companies and funds.
Here at IMC, our purpose is progress. Learn more
Be in the know with our latest news, insights and analysis
Our Board and Executive Leadership Team
Find out what makes our business and our brand tick
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At the beginning of 2023, global recession fears and rising interest rates cast a shadow over the economic outlook. Central bankers are grappling with record inflation, while executives face delays due to concerned investors who are still analyzing the severe global stock market crash in 2022, the war in Ukraine, other geopolitical crises, supply chain disruptions, and stricter regulatory scrutiny.
Downturn deals often yield the best results, as buyers can outperform in challenging times. Many C-suites and boards may consider M&A due to a reset in valuations, reduced competition for acquisitions, and new assets coming to the market, particularly distressed businesses. Some companies have already invested in bold moves to outpace their rivals.
Surprisingly, 60% of CEOs in a recent global survey stated that they would not defer deals in 2023 to avoid economic uncertainty, even though 73% are pessimistic about global growth. M&A can help CEOs accelerate digital and ESG reforms, which are crucial for long-term success.
Technology has been a dominant force in dealmaking, with many companies striving to acquire digital assets and capabilities. Due to fierce competition and high-value multiples, some firms have struggled to make acquisitions. Companies want to position themselves against competitors and a rapidly changing market, fill their pipelines, reorient to new markets, and redefine themselves beyond tech skills and the energy transition.
Asia Pacific: Deal volumes and values in the Asia Pacific region declined by 23% and 33% between 2021 and 2022, with China experiencing the largest drops (46% and 35%). China’s pandemic response and weak export demand have slowed domestic M&A. Companies investing in Asia are increasingly looking beyond China to India, Japan, and Southeast Asia. India is currently trailing China in deal values but has surpassed Japan and South Korea.
EMEA: Despite rising energy costs and wavering investor confidence, M&A in EMEA outperformed Asia Pacific and the Americas. EMEA deal volumes and valuations decreased by 12% and 37% between 2021 and 2022. However, the region had 20,000 deals in 2022—17% higher than pre-pandemic levels in 2019.
Americas: Macroeconomic, regulatory, and geopolitical challenges have reduced deal volumes and values between 17% and 40% from 2021 to 2022 in the Americas. Megadeals—transactions over US$5 billion—fell from 81 to 42 during the same period. The decline was more significant in the second half of 2022, with only 16 megadeals compared to 26.
CEOs will focus on reinvention and M&A in 2023. Dealmakers will closely monitor when the US Federal Reserve stops raising interest rates due to recessionary fears. Stability and assurance will drive M&A activity, especially in the private equity sector. M&A, particularly portfolio optimization, will help business executives reposition, expand, and succeed in this rapidly changing landscape.
While global M&A trends in 2023 are influenced by market turmoil and economic challenges, opportunities still exist for organisations with a clear strategy, financial resources, and the ability to navigate transformational deals. By focusing on reinvention, digital and ESG reforms, and portfolio optimization, companies can successfully leverage M&A to secure their long-term growth and success in the face of adversity. To navigate these complex transactions, organizations may benefit from partnering with M&A transaction advisory services in Singapore and other global hubs like the IMC Group, which can provide valuable expertise and guidance in executing successful deals.
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