Business executives in Northern Ireland have lost confidence in the number of mergers and acquisitions (M&A) deals expected to close this year, according to reports.
B.According to consulting firm KPMG, the firm’s research shows that most of Ireland’s M&A leaders expect deal volumes to remain stable or to increase.
However, 40% expect trading volumes to decline due to market uncertainty.
But three-quarters of the 150 respondents to KPMG’s islandwide survey said they would close a deal this year, bucking recent trends, with most expecting it to be a buyer’s market. .
However, just over 90% expect the number of deals to decline after the record company’s valuation.
Nearly half believe that higher interest rates will cause funding costs to become a barrier.
Investors are expected to be opportunistic, however, as valuations for expected deals may drop in some areas.
About 40% expect technology to be the most active sector, followed by healthcare/pharmaceuticals and energy/infrastructure.
Russell Smith, Head of Seal Consulting at KPMG in Northern Ireland, said:
“However, with companies with record dry powder and strong balance sheets, the appetite for private equity remains strong.
“As investors become more selective, we continue to see targets with intense competition and pricing and sustainable business models in certain sectors such as energy and technology.”
Source: Belfast Telegraph