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Current M&A Outlook Into 2023

Posted on January 3, 2023 By

In 2021 and early 2022, we saw record-breaking levels of M&A activity in the United States and around the world, and many business owners are wondering how long this cycle
will last.

For the start of 2023, the M&A market continues to remain active. The market, on the whole, has managed to withstand the impacts of the COVID-19 pandemic, supply chain disruptions, labor shortages, and geopolitical factors. While some sectors have been thriving more than others, such as tech, even the sectors facing more challenges have seen a fair share of the M&A action. The deal market has actually remained quite resilient, pointing to the power of the free-market system.

While we cannot forecast the future with 100% certainty, we can be confident moving into 2023, as there is plenty to be optimistic about. Of course, you will always have your doomsday proclaimers focusing on a possible recession, and while anything is possible, we feel there are many reasons to be positive.

Many businesses have strong and stable fundamentals for the near future. Private equity firms and banks are still sitting on ample amounts of capital that will eventually have to be invested. This also means that they can maintain leverage rates, and financial buyers will be able to keep valuations high for quality businesses. In particular, the pharmaceutical, life sciences, and med tech sectors are all expected to see M&A heat up in late 2023. Technology sector businesses are also highly favored as demand for their services continues to grow in today’s digitalized global society.

Inflation is an important factor for companies right now. When inflation is high, the strongest companies are those that survive. And if your business not only survives but also thrives, your multiples can increase, and your margins can expand. It is important to remember that even when times get tough, there will always be companies that are doing well and attracting buyers.

Ready to explore your exit and growth options?

The M&A climate ahead will offer plenty of opportunity. If you can identify your business’s qualities and assets to bolster its growth, you can gain the upper hand if you choose to sell. There should also be plenty of opportunities for you to add capabilities to your company’s offerings through a merger or acquisition. The well-capitalized buyers and investors will still be seeking growth options as they sit on record levels of money, which will continue to be a driving force for M&A deals into the next few years.

These buyers and investors will also drive which sectors become the most appealing into 2023 and beyond. Some sectors will struggle to get premium valuations over the next few years. There will still be M&A activity in these sectors, partially to bail out struggling companies, but valuations will be tempered based on perceived risk.

Of course, success is never guaranteed. But if you are a business owner considering the sale of your company in the next year or so, there are plenty of reasons to be optimistic. Working with an experienced M&A advisor can make all the difference in the successful sale of your business for several reasons. Please reach out to our experts at Benchmark International if you would like to talk about the possibilities for your company.


Schedule A Call



Americas: Sam Smoot at +1 (813) 898 2350 /

Europe: Michael Lawrie at +44 (0) 161 359 4400 /

Africa: Anthony McCardle at +27 21 300 2055 /  


Benchmark International’s global offices provide business owners in the middle market and lower middle market with creative, value-maximizing solutions for growing and exiting their businesses. To date, Benchmark International has handled engagements in excess of $8.25B across various industries worldwide. With decades of global M&A experience, Benchmark International’s deal teams, working from 14 offices across the world, have assisted thousands of owners with achieving their personal objectives and ensuring the continued growth of their businesses.





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