The M&A market needs stable economic, political and financial conditions in order to thrive. Liquidity remained, but as for the others, let’s just say as 2022 unfolded the headwinds increased.
The M&A market lacked the required confidence for buyers and sellers to transact and the risk appetite needed for M&A did take a significant hit. That’s perfectly reasonable given the macro issues we have had to navigate. From the war in Ukraine, the long-tail impacts of Covid-19, right through to supply chain issues and inflation and drastic interest rate rises. Just as we sensed confidence returning slowly but surely, we have the hints of a banking crisis. Markets, understandably, are liable to over-react. Conditions are fragile, we need certainty to return for confidence to grow.
