A number of 25,124 deals were clinched last year, totally worth $1.03 trillion, above the 2020 and pre-pandemic levels.
The upbeat expectations for the second half of 2023 come as 60% of CEOs globally say they do not intend to delay deals planned for 2023 despite worries related to recession and rising interest rates, falling valuations, geopolitical tensions and supply chain turmoil.
“While there was a decline globally, Romania’s deal market had a very good 2022, both in terms of volumes and value, with the difference to 2021 being brought by more deals worth above EUR100 million, as well as a deal of over EUR1 billion sealed in energy. While 2023 is expected to abound in challenges and uncertainty, strategic acquisitions and investment portfolio optimization are still priorities irrespective of the challenging macroeconomic and geopolitical factors, helping executives reposition their business, cement growth and get durable results on the long term,” stated Cornelia Bumbacea, Partner Deals, PwC Romania.
Mergers and acquisitions tend to slow down during uncertainty or market volatility periods, but these can also bring plenty of opportunities given the lower valuations, stepped down competition for deals or new assets.
“Current market conditions suggest we are in a favorable moment for mergers and acquisitions provided firms have well-thought-out strategies and the financial resources to seal transformational deals that should shape their businesses and aid their long-term success. Thus, beside the tech and energy fields, we believe investors will also look at other business models generating stable revenue flows and higher margins that should secure their viability,” said George Ureche, Director and M&A Leader, PwC Romania.
2022 global M&A activity varied across regions, with more deals in Europe, the Middle East and Africa (EMEA) than in America and Asia Pacific, despite the higher energy costs and regional instability.
(English version by Catalina Apostoiu)