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In 2023, dynamic market conditions driven by slowing inflation, fluctuating interest rates, banking crises, and tech advancements have created significant opportunities for transformation, contributing to a potentially more active M&A market. Despite a challenging first half of the year, marked by an 8 percent decline in deal volumes, the latter part of the year is expected to present an upturn, particularly in mid-market deals.
These mid-market transactions could dominate the market in the coming months as corporations and CEOs focus on strategic acquisitions and select divestitures to adapt their portfolios to future needs. Value creation, achieved through better identification of transformational levers, has become increasingly critical. This value can be realised with strategic repositioning, portfolio optimisation, digitalisation, business model changes, and yet untapped avenues such as green tax credits and sustainable financing.
The disruptive impact of AI on businesses and economies is expected to further create M&A opportunities. Additionally, the ongoing energy transition and a push for net-zero strategies have been promoting M&A activity in various sectors. In response to these rapid changes, most businesses are urged to adopt bold strategies but not necessarily focus on large transactions, while companies with substantial financial reserves are well-positioned to close larger, more transformational deals.
Preparation is paramount in the current market, as tighter financing conditions are leading to longer processes, more uncertain outcomes, and the need for more comprehensive due diligence. Sellers should anticipate a greater level of scrutiny and strive to be "deal ready". Despite the challenges, it remains a buyer's market, particularly for cash-rich corporate acquirers and mid-market deals. Follow this link, if you want to learn more about the M&A activity in Switzerland in 2023
Some key takeaways for Switzerland:
The Swiss M&A market is still driven by mid-market activities, although the time to finalise a transaction is increasing.
There are some large scale transactions in preparation, but the overall landscape remains difficult, mainly due to financing constraints.
Visit our blog post for further insights into the development of dealmaking and our predictions for its future direction.
“Restructuring and distressed M&A may grow and intensify in the near future. This will create opportunities to invest in or acquire companies with innovative business models and interesting technology at more reasonable valuations than previously possible.”
“Doing deals in today’s climate is not for the faint-hearted. However, with the right strategy, business case – and courage – CEOs can put some meaningful distance between themselves and their competitors in the long term.”
Learn more about the key trends driving M&A activity globally in 2023. For potential investment hotspots check out our global industry-specific takeaways below.
And how about the situation in Switzerland? In the next few weeks, our industry experts will be sharing their views and expectations of trends in Switzerland ‒ so please stay tuned.