While the last few months have certainly felt uncertain and unprecedented for many across the private sector, the M&A and Investment market has remained resilient amid a raft of economic and political implications.
With rising interest rates implemented by central banks around the globe in a battle to tame inflation, many businesses face new challenges, adding risk to business and investor confidence as seen by the collapse of banks like Credit Suisse and SVB. Added to this, a multitude of regulatory changes implemented across different industries, as well as the growing property crisis in China, have contributed to a growing mix of threats threatening to cause economic uncertainty. In our Sector Valuation Insight Report below, we share an insight into how resilient certain sectors have been against these challenges.
June Q2 2023 report - An overview of headline trends as well as sector specific valuations, recent transactions, and related insights.
Overall market trend
The challenging economic landscape from Q1 of 2023 still remains, amidst periods of uncertainty and geopolitical instability. While things look positive for some sectors, namely Business Services and Technology, the continued high levels of inflation and consequent impact on costs of living continue to affect consumer spend with knock-on effects to other areas of the market.
Although the economic outlook remains challenging for many sectors, the volume of transactions that have occurred among both financial and strategic buyers/investors remains buoyant, with an impressive total of 3,055 transactions in Q2 compared with 3,014 in Q1.
Sectors included
TEV/EBITDA Variance
Average combined TEV/EBITDA Multiple (April 23 – June 23)
13.9 x
Growth in combined sector TEV/EBITDA multiple (April 23 – June 23)
3.5%
M&A Transactions (April 23 – June 23)
3,055
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