:format(webp)?_w=3840)
Key Capital is pleased to share the Trends in Global M&A 2023 - 2024 research report, an annual collaboration between IMAP (International Mergers and Acquisitions Partnership) and our US partner firm Capstone Partners.
Results of the proprietary survey of 100 IMAP dealmakers from 49 countries reflect real time insights from live mandates and sector knowledge from our partner firms around the world. The report covers deal flow projections and acquisition criteria for 2024 broken down by sector and region.
“From an Irish perspective, buyers were undoubtedly more cautious last year and conducted significantly more due diligence than we have seen over the previous couple of years. Less competitive deal processes meant buyers had more influence. As with the global survey, we expect increased demand for high quality assets, Private Equity to be increasingly active in 2024 as they execute on their fund mandates, and that increased competitive tension will result in a gradual uptick in valuations and deal closings as they revert to long term norms.”Richard Tunney - Managing Director, Corporate Finance at Key Capital
Irish business owners and entrepreneurs considering an exit in 2024 will be most interested in the following insights from the report:
1. 2024 M&A purchase multiples to broadly remain at 2023 levels
M&A purchase multiples are expected to remain steady in 2024, with 67% of advisors surveyed anticipating little to no change in valuations compared to 2023, likely driven by market and economic uncertainty and a lack of motivated acquirers. Advisors showcased significant consistency regarding 2024 industry valuation forecasts, with the TMT, Healthcare, and FinTech & Services industries most likely to receive the highest valuations, matching industry valuation rankings from 2023.
:format(webp)?_w=3840)
Question: How do you expect M&A transaction multiples in 2024 to compare to 2023? Question: What three industries do you expect to have the highest valuations in 2024? Select three. Source: IMAP & Capstone Partners 2023-2024 Trends in Global M&A Survey, Total Sample Size (N): 100
2. Acquirers prioritise strong financial profiles
Financial criteria comprised the top three most important M&A target characteristics for acquirers in 2023, as noted by total advisers surveyed. This includes:
Strong margin profiles (71% of advisors)
Recurring revenue (63%)
Defensible cashflow (47%)
:format(webp)?_w=3840)
Question: What characteristics have been important to buyers when considering an M&A target in 2023? Select three. Source: IMAP & Capstone Partners 2023-2024 Trends in Global M&A Survey, Total Sample Size (N): 100
3. Succession to remain the main driver of private company sales
Business owners planning for the future is expected to remain prevalent in the near-term across all regions, with 59% of advisors predicting successions to be the most common transaction type in 2024, up from 54.9% in 2023. Robust levels of succession planning have been driven by an aging business owner population preparing for retirement through a liquidity event. Cash out deals (42% of total advisors surveyed) are also expected to be a common transaction type in 2024 as many business owners anticipate M&A valuations to rebound from 2023 lows.
:format(webp)?_w=3840)
Question: What do you expect to be the most common transaction types for 2023/2024? Select all that apply. Source: IMAP & Capstone Partners 2023-2024 Trends in Global M&A Survey, Total Sample Size (N): 133, 100
Succession in businesses in Ireland and when to exit
Succession is a often a complex issue for family businesses and is expected to be the most common driver of transactions in the coming year, according to IMAP & Capstone Partners 2023-2024 Trends in Global M&A Survey.
Owners of family business in Ireland who are looking to retire face a difficult choice in deciding whether to sell their business or pass on to family members. This decision comes with a multitude of issues, both commercial and emotional.
We often get asked ‘when is the best time to exit a business?’ If the family is staying in control but bringing in external management, how do shareholders access liquidity? Even if you have a succession plan, how do you secure your family’s future by extracting value from the family business?
Our experience at Key Capital is that succession is the biggest driver of M&A and we would say to entrepreneurs facing succession decisions; you lose optionality the longer you wait. There are a lot of solutions available and it is important that you understand them. We advise people to plan early when you are in control because if you leave it too long you risk losing control.
“We have dealt with a number of complicated succession transactions involving multiple parties and have a lot of experience with family businesses grappling with these issues. The time to deal with it is when you have options. Don’t be afraid of it and get advice early.”Colin Morgan - Group CEO at Key Capital
Read the IMAP & Capstone Partners Trends in Global M&A 2023-2024 report here:
Key Capital is the exclusive Irish member firm of IMAP, an International Mergers and Acquisitions partnership of more than 450 M&A professionals in 49 countries. IMAP has closed over 2,200 transactions valued at $130bn in the last 10 years and is consistently ranked in the world’s Top 10 M&A advisors (Refinitiv) for mid-market transactions.
Contact Us
For further information about how Key Capital Corporate Finance can help you sell your business, please email or call us in confidence.
Email: richard.tunney@keycapital.ie
Phone: +353 1 638 3838