The buy-out market was rather subdued throughout 2023, with
global private equity (PE) deal volume down by 22% year-on-year,
according to Mergermarket.
This is due, most notably, to uncertainty in the pricing of
debt, given steep global monetary tightening since the Covid
pandemic. It also reflects more general economic concerns, such as
the resurgence of inflation or possible recession (both of which
appear to have subsided).
These factors have resulted in a continuing and fundamental
mismatch in sell-side and buy-side expectations amongst both PE
firms and strategic acquirers. PE firms have however remained busy
on fundraising and portfolio management, including bolt-on
acquisitions and restructuring assets. They have also amended and
extended debt, indicating that financing is still available for
strong credits.
