What we expect as a deal sourcing team in 2023

The year 2023 is casting its shadows ahead.
A change in interest rate policy is not expected until 2024. This means that interest rates will continue to rise in 2023. This has a direct impact on the M&A market. Money will become more expensive and we expect multiples in some sectors to fall in 2023.

Prepared targets in focus

Sustainable companies that have managed crises well, as in the past, and have prepared for further hurdles will become the focus of investors.

Carve Out

What we see is an expanded willingness of corporations to bring parts of their business to market that do not directly generate revenue in their core business. We are seeing a focus on the core business. This means that in 2023 we expect to see more carve outs and an increased willingness of groups to talk about partial sales.

New chances

Overall, 2023 will be a good opportunity to reposition for the future. Small and medium-sized companies have learned from the crises and understood that they can be more successful and better in a larger group or association. That is why we will see new and larger buy and build concepts in 2023.

Cross border

Individual acquisitions, on the other hand, will probably decrease.
For cross-border transactions, we will likely see an increase in M&A buying activity in 2023. Investors want a diversified portfolio. Not only in verticals, but also – or especially – in a broader footprint in international markets.

In conclusion, we rate 2023 as solid with many opportunities. The willingness to bring one’s company into a portfolio will increase moderately.

We wish you, dear reader, a successful start into the new year. Feel free to let us talk about your portfolio strategy.

We will help you to grow in 2023 and beyond.