Dealmakers have a lot to be frustrated with in the M&A market right now, with valuations low, deal processes taking longer than ever, scarcity in the debt markets and other headwinds making their impact. But despite it all, deal volume was actually historically healthy in the third quarter of 2023.
There were 115 publicly announced transactions in the quarter. That is down from the 120 deals made public in Q2:23 and the 140 from last year’s third quarter. But the average deals per quarter for 2023 at 115 is equal to the average deals per quarter in 2019, a time of cheap and abundant capital and before anyone knew what COVID-19 was. Plus, on an annualized basis, Q3’s total would give us the second-highest annual total, ever. Not bad for a market supposedly in the doldrums.
To be fair, the average size of transactions has fallen significantly from last year and from 2019, and the disclosed dollars spent on deals has dropped precipitously since the peak of $7.1 billion spent in Q2:21. Q3:23 had just $700 million in spending, albeit in disclosed spending. And we don’t make light of the increased difficulty in getting any deal done these days. But all we can say is we expected much worse, and well done to the brokers and lenders that earned their fees. Let’s just see if the mood at NIC is any better this year compared to last.
