M&A DEALS EXPECTED TO SLOW IN 2023

M&A activity in Ireland is expected to soften through 2023, according to a KPMG survey of 150 executives involved in corporate deals. Sixteen percent of M&A professionals expect higher deal volumes in 2023, while 44% believe they will remain broadly stable, and 40% believe they will decrease. Three out of four respondents anticipate that 2023 will be a buyers’ market, bolstered by the expectation that deal multiples will soften.

Mark Collins, head of deal advisory at KPMG, said that in spite of economic uncertainty, there is opportunity for M&A activity in 2023 as market multiples soften. “Highquality Irish targets continue to be of interest to both international and Irish investors,” he said. “Given the macro environment, diligence in all its forms will be essential to validating investment returns.”

David O’Kelly, head of M&A at

KPMG, said he expects continued competition for Irish businesses in sectors such as healthcare and financial services. “Appetite remains strong from private equity with record levels of dry powder and corporates with strong balance sheets. We continue to see strong competition for targets with resilient business models and high performing management teams,” said O’Kelly.

Survey respondents expect the tech sector (38%) to be most active in 2023, followed by healthcare and pharmaceuticals (25%) and energy/ infrastructure (11%).

Half the survey cohort identified availability and cost of financing as the primary obstacle facing deal activity in 2023. Two out of five cited the current inflationary environment as a concern, indicating that macroeconomic trends will be at the forefront of dealmakers’ minds in 2023.