The European M&A market remained challenging in 2023 but the outlook is more optimistic for this year, according to a new report by law firm CMS.
The survey, based on a study of 559 deals, found that among dealmakers there had been a shift in pricing structure with a notable decrease in PPAs and earn-outs, indicating a shift towards more predictable deal terms. However, smaller transactions show continued pricing uncertainty.
Other key takeaways include:
- ESG due diligence is on the rise
- Increase in strategic investments
- Sustained impact on economic and geopolitical factors
What they said
Louise Wallace and Malte Bruhns from CMS, said: “We are optimistic about deal activity in Europe for 2024. At this point, early in 2024, some of the adverse economic and political factors that have historically impacted on M & A growth are still evident, but there is growing confidence in the debt markets, inflation is falling, and there is plenty of dry powder and pent up demand from institutional capital. The fact that half the globe is expected to have general elections in 2024 might itself prompt deal activity.”