IMAP closes 158 M&A transactions in Q1-Q3 2023

IMAP closed 158 M&A transactions around the world valued at over $7 billion during the Q1-Q3 period. 47 deals were closed in Q3 alone, which was down compared to the same period in 2022 but up slightly from the previous quarter. Expectations of a recession, while still present, have been getting pushed out in time as the year has progressed and IMAP’s consistent track record in recent quarters reflects an unyielding mid-market environment. Buyers have become more selective due to elevated financing costs and cautious lending practices, but there is strong demand for high-quality assets with profitable and unique growth-oriented business models. Deal activity is also being driven by strategic players and PE investors typically focused on larger deals that are now moving downstream in search of less risky and less complicated transactions. IMAP dealmakers continue to report that valuations are under pressure, which leads to discrepant expectations among buyers and sellers, although there is substantial variability across sectors. Technology, Business Services, Industrials and Healthcare were the most active sectors for IMAP during the Q1-Q3 period, accounting for 50% of total deal volume. Approximately 29% of the transactions were cross-border, which is consistent with previous quarters and reflects the IMAP’s global nature.

“As usual, headlines about the macro-economic situation can be misleading. Dealmaking conditions are challenging, but by no means prohibitive and there is plenty of activity in the mid-market. IMAP dealmakers are in the thick of the things and closed out another solid performance in Q3. We will continue to adapt to our client needs going forward, whether on the sell side or buy side, and expect a strong close to the year in Q4.”

Jurgis Oniunas, IMAP Chairman

Comments from IMAP India, CEO – Ashutosh Maheshvari

“The macroeconomic landscape is positively impacted by accelerated government spending and increased capital expenditures, which partly offset the slowdown in exports. Equity capital markets are buoyant and liquidity is driving the rise of public markets. Buyout funds are active buyers and deal activity is reasonably good in the Industrials and Infrastructure sectors.”