The mergers & acquisitions (M&A) market is constantly evolving, and it is difficult to predict what the future holds. However, there are a number of trends that are likely to continue to shape the M&A market in 2023:

• The continued rise of cross-border M&A: As the global economy becomes increasingly interconnected, cross-border M&A is likely to become even more common. “The shifting tides of cross-border M&A,” presents the findings of research conducted by the Dentons global M&A team in collaboration with MergerMarket and is available for download here.
• The rise of technology-driven M&A: Technology is increasingly driving M&A activity, as companies look to acquire new technologies and capabilities to stay ahead of the competition. Technology, media and telecom outperforms other sectors with 30% of deal value, according to McKinsey. Some of the biggest transactions last year included Elon Musk’s acquisition of Twitter at $44 billion.
• The growth of private equity-backed M&A: Private equity firms are expected to continue to be active in M&A, as they look to acquire companies that they can grow and then sell for a profit.
• The focus on ESG: Environmental, Social and Governance factors are becoming increasingly important to investors and consumers, and companies are expected to focus more on ESG in their M&A decisions.

These trends are likely to have a significant impact on the M&A market for the remainder of 2023 and beyond. Companies that are aware of these trends and are prepared to adapt to them are more likely to be successful in the M&A market.

Companies that are considering M&A activity in the future can prepare for a successful deal by conducting market research and gathering professional advice. Allow time to:

• Do your research: Before making any acquisition or sale decisions, it is important to do your research and understand the market. This includes understanding the factors that are affecting the market and the trends that are likely to continue in the future. Work with trusted advisors to identify industry sources and publications to follow.
• Be patient: M&A transactions can be complex and time-consuming. Even relatively simple deals can require a lengthy timeline. Be patient and avoid rushing into any decisions. By taking the time to do your research and get professional advice, you can increase your chances of success in M&A.
• Get professional advice: It is also important to get professional advice from a Dentons M&A advisor who can bring depth of experience in a variety of industries to help you to assess the potential risks and rewards of M&A and work with you to negotiate the best possible deal.

Understanding the M&A landscape is key to a successful deal, regardless of the industry. Know your market, plan ahead and build a qualified team of M&A professionals for your business.

The Dentons global M&A group includes more than 2,600 lawyers, covers the full spectrum of mergers and acquisitions transactions, which it overlays with strong and deep industry sector capabilities and deep cultural knowledge. Reach out to attorney Leslie Smith for additional resources or support.