Gaining an edge in a market reset
STATE OF THE MARKET
Introduction
Looking Back at 2023
Looking Ahead to 2024
hot topics
Telecommunications
Technology
Healthcare & Life Sciences
Retail
Consumer Products
industries
Energy & Natural Resources
Building Products
Payments
Insurance
Banking
Wealth & Asset Management
Asset management
Middle East
Japan
regions
Brazil
M&A Report 2024
Regulation
Automotive & Mobility
India
Generative AI
Aerospace & Defense
Media
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Introduction
M&A REPORT 2023
When M&A Is the Answer
M&A Report 2023
In an uncertain market, bold moves will define the future
Methodology
China
Key Contacts
India
Lorem ipsum
Welcome to Bain’s fifth M&A global annual report
Our mission: Improve M&A by sharing practices of the best deal makers
We publish our annual M&A report to help business leaders get better at the art and science of doing deals.
In this, our sixth report, we analyze why 2023 was the year that buyers and sellers couldn’t agree on valuations, noting how strategic deal multiples sank to their lowest level in 15 years while public market valuations ended 2023 near all-time highs. Our report includes a look at the state of the market and our view of the year ahead (optimistic). It also dives into specific industries and regions and explores the impact of generative artificial intelligence and regulatory scrutiny on dealmaking.
A common theme running throughout these chapters: Turbulent times produce strategic winners and losers, and 2023 was no exception.
Les Baird
Leader of Bain’s M&A practice
Brazil
India
Japan
Middle East
Aerospace & Defense
Automotive & Mobility
Banking
Consumer Products
Energy & Natural Resources
Insurance
Payments
Retail
Technology
Telecommunications
Wealth & Asset Management
Sources: Dealogic; Bain M&A database 2022 (N=2,845 companies)
Companies that acquired during the last downturn outperformed over the long run
Average total shareholder returns (CAGR 2007–2017)
5.9%
4.7%
for companies that acquired in 2008–2009
for companies that did not acquire
in 2008–2009
Healthcare & Life Sciences
Media
Looking Back at 2023
Looking Ahead to 2024
Generative AI
Regulation
Building Products
M&A deal value dropped off in the second half of the year
Source: Dealogic
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
000B
238B
225B
244B
244B
266B
250B
451B
442B
375B
345B
$392B
$500B
400
300
200
100
0
Why did fewer deals get done? A gap in valuation expectations
said a gap in valuation expectations affected the ability to get deals done
are waiting for improved valuations before bringing assets to market
Sources: Dealogic; Bain M&A database 2022 (N=2,845 companies)
Public market valuations rebounded while strategic deal multiples fell
Enterprise value–to-EBITDA valuations, indexed to 2014
2022–2023
4%
–16%
S&P 500
Strategic
deals
2023
2022
Two-thirds of buyers
Two-thirds of potential sellers
2014
The valuation gap grew in 2023
2018
Year over year
DOWNLOAD PDF
We publish our annual M&A report to help business leaders get better at the art and science of doing deals.
In this, our sixth report, we analyze why 2023 was the year that buyers and sellers couldn’t agree on valuations, noting how strategic deal multiples sank to their lowest level in 15 years while public market valuations ended 2023 near all-time highs. Our report includes a look at the state of the market and our view of the year ahead (optimistic). It also dives into specific industries and regions and explores the impact of generative artificial intelligence and regulatory scrutiny on dealmaking.
A common theme running throughout these chapters: Turbulent times produce strategic winners and losers, and 2023 was no exception.