Discount prices keep global M&A activity afloat 

A persistently gloomy macroeconomic backdrop and near banking crisis drove a decline in M&A activity in Q1 2023, pushing global deal value down 32% from the peak just over a year prior.

But total M&A deal value still topped $1 trillion for the quarter. While certain sellers—think PE—stepped back in recent months, lower valuation multiples in some cases helped encourage deal flow.

Our Q1 2023 Global M&A Report, sponsored by Liberty GTS, explains which deals are happening and why, diving into dealmaking trends within industries and between regions.

Key takeaways

• Multiples on PE-led buyouts collapsed by 29% in Q1 after holding firm for two years, reflecting a shift to smaller and cheaper deals.
• Smaller companies—those worth $100 million or less—have seen their median enterprise value drop to a revenue multiple of 1.1x, trailing behind the overall M&A market’s median of 1.6x.
• Founder-owned businesses made up 85% of all businesses sold in Q1, their highest share of the market ever.

This report was sponsored by Liberty GTS. Interested in sponsoring future editions of this report? Visit our media partnerships page to learn more.

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