Dealmaking values rebound while volume levels continue to lag, report shows

Global dealmaking “continues to remain subdued due to the number of headwinds such as higher interest rates which ended cheap acquisition finance, stricter antitrust enforcement, continued economic uncertainty and geopolitical tension".

The value of dealmaking in Ireland rebounded this year, according an authoritative LSEG report.

Mergers and acquisitions with Irish involvement reached $3.7bn (€3.4bn) during the first three months of the year, more than double the value recorded during the same period last year.

Deal values surged 128% in the period “but remain well below the 10-year average for the first quarter,” said Ian McFarlane, Ireland country manager at LSEG.

The report also found that while the value went up for Irish dealmaking, the volume has decreased substantially since the early stages of the pandemic which rocked most business sectors.

The number of Irish deals declined 24% year-on-year to the lowest first quarter total since 2020.

Meanwhile, deals involving an Irish target totalled $2.3bn during the first quarter, more than triple than value recorded during the same period in 2023 as the value of domestic deals more than doubled, and inbound deals increased 291%.

Irish outbound mergers and acquisitions totalled $96.4m, down 31% on the first three months of 2023, while there was a 15% decline in the number of deals.

Global dealmaking “continues to remain subdued due to the number of headwinds such as higher interest rates which ended cheap acquisition finance, stricter antitrust enforcement, continued economic uncertainty and geopolitical tension,” said Mr McFarlane.