IMAP M&A Deal Summary H1 2022

Global Results

IMAP closed 109 M&A transactions valued at over $18 billion in the first half of 2022. Compared to the past few quarters in which the market experienced a notable post-COVID rebound and IMAP record high deal closings (111 in Q4 2021 and 65 in Q1 of this year), the pace of dealmaking activity in Q2 was notably slower. IMAP partners are now operating in a market that is transitioning away from a phase of cheap financing, pent-up demand and high valuations to one of surging inflation, rising interest rates, more selective investor appetite, and widespread domino effects from the war in Ukraine.

Despite the general downturn in M&A activity observed in Q2, the market is by no means frozen; buyers are still out there and looking for high quality opportunities. Companies with proven resilient business models in the face of challenging macroeconomic conditions are prime targets for acquisition. Moreover, even though PE investors are not immune to instability, their presence in the M&A market is expected to remain strong. Technology, Business Services, Industrials, Financial Services, and Food & Beverage were the most active sectors for IMAP in H1, accounting for 59% of total deal volume. Ongoing digital transformation and evolving business models are driving convergence and deal opportunities across many of these sectors. Going forward, specialized companies in the IT, Healthcare and Financial Services sectors are expected to continue attracting significant investor attention.

Roughly 26% of IMAP’s transactions in H1 were cross-border, which is somewhat lower than previous periods and likely reflects growing investor uncertainty surrounding the international landscape. The majority of IMAP’s H1 deals involved a target in Europe or North America, while difficult market dynamics continue to weigh on activity throughout other regions of the world.

Ireland and UK

M&A remains high on the agenda for boards and senior management teams across the UK & Ireland markets. The pace of deal-making has continued to hold strong despite the various economic challenges, with a particular focus on bolt-ons and operational acquisitions.

We are seeing private equity interest across a range of sectors, from enterprise software through to logistics and distribution. Investor interest in the Irish market has strengthened and we are continually engaging with international investors attracted to the country’s leading companies and highly promising growth opportunities.

The pace of deal-making has continued to hold strong, with a particular focus on bolt-ons and operational acquisitions.
Saif Shubana, Associate Director at Key Capital

We are cautiously optimistic on the outlook for the rest of the year: although there are challenges that need to be navigated in each deal, we feel confident that strategic buyers and investors are actively seeking high quality opportunities.

Read the full H1 report including IMAP partner firm commentary from around the world in the download below.

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