IMAP partners around the world closed 238 M&A deals worth more than $26 billion in 2022. Total deal volume for IMAP in 2022 was down from the record high set in 2021, but beat expectations as the mid-market M&A environment held strong despite challenging macroeconomic conditions. Persistently high inflation, rising interest rates, stock market volatility and geopolitical spillovers fueled uncertainty throughout the year. Moreover, constricted availability of financing and diminished valuations put a damper on the rate of M&A transactions closed. And yet, there was ongoing demand for high quality assets, particularly those in the mid-market sector with defensive growth models that proved resilient in a slowdown environment.
Industrials, Technology, Healthcare, Business Services, Transportation & Logistics, and Food & Beverage were the most active sectors for IMAP in 2022, accounting for almost 70% of total deal volume. Roughly 26% of IMAP’s transactions in 2022 were cross-border, which is marginally lower than previous periods and likely reflects growing investor uncertainty surrounding the international environment. PE buyers became more reluctant to make moves as 2022 progressed but well capitalized strategics continued to pursue buy-and-build transactions. The greater degree of scrutiny from buyers and an overall more discerning approach to M&A observed in recent months will continue this year.
Jurgis Oniunas, IMAP Chairman, commented: “Contrary to mid-year expectations and a tough macroeconomic backdrop, 2022 ended strongly for IMAP, just above the levels of pre-COVID 2019. A warm winter in Europe so far has postponed a major energy crisis, and concerns about rising inflation, although still at stubbornly high levels, have eased. However, as central banks continue to take liquidity out of the markets and demand destruction continues, inflation concerns are being replaced by fears regarding corporate profits, and there seems to be no end in sight for the conflict in the Ukraine. So, 2023 will be another challenging year, but as always, and indeed for the past 50 years, our team of more than 450 professionals will continue to provide support, advice, and solutions to business owners around the world, in M&A, capital raising, asset management and other corporate finance areas.”
Read the full summary, including IMAP Partner Local M&A Insights in the report here .