At the end of last year, M&A activity in the Europe, Middle East and Africa (EMEA) region hit  an all-time high and strong momentum in dealmaking looked set to continue well into this  year. However, the war in Ukraine, soaring inflation, rising interest rates and slower  economic growth all weighed on activity during the second half. Moreover, continuing  geopolitical uncertainty and global environmental concerns are dampening the outlook for  2023.  

Despite all the challenges, opportunities in M&A abound and the deals pipeline remains  buoyant. The technology, media and telecoms sector is robust, benefitting from ongoing  technology disruption. The industrial and chemicals sector in the German-speaking part of  Europe is also strong, as companies undertake portfolio reviews to unlock value. Business  services and real estate are thriving, owing in part to investors fleeing to hard assets.  

Private equity money continues to buoy the market. Undervalued deal targets and distressed  sales are expected to drive activity during 2023. Private equity investors, in particular, are expected to be enthusiastic acquirers of distressed assets. The weak euro and pound are  prompting investors with dollars to size up opportunities in the eurozone and in the UK, in  particular. Will 2023 be another robust year for EMEA M&A activity?  

The Financial Times – in partnership with Datasite – provided a key forward-looking market outlook for the EMEA M&A market and explored the risks and opportunities that this new dealmaking environment presents. 

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