Resilient mergers and acquisitions market set for an upturn

Following a pronounced slowdown in 2022 dealmaking is ramping up again, writes Barry McCall

Acquirers are seeking strategic assets and the fundamentals of the Irish economy remain strong making it an attractive location for investment.

Following a stellar year for M&A activity in 2021, the market went into reverse somewhat in 2022 as a result of the war in Ukraine, the spike in energy prices, rising inflation and consequent interest rate rises. The outlook for the remainder of the current year is positive, however, with rising business confidence leading to an increased appetite for acquisitions.

“While 2022 saw a global slowdown primarily due to uncertain debt markets and macroeconomic factors, there is confidence that a much stronger appetite for deals is returning,” says Ronan Murray partner EY Ireland Corporate Finance and president of Cork Chamber of Commerce. “Despite some continued headwinds in the first quarter of this calendar year, it is expected that the M&A landscape will see a more tangible positive shift in activity by the third quarter of 2023.”