IMAP Deal Summary H1 2022

IMAP closed 109 M&A transactions valued at over $18 billion in the first half of 2022. Compared to the past few quarters in which the market experienced a notable post-COVID rebound and IMAP record high deal closings (111 in Q4 2021 and 65 in Q1 of this year), the pace of dealmaking activity in Q2 was notably slower. IMAP partners are now operating in a market that is transitioning away from a phase of cheap financing, pent-up demand and high valuations to one of surging inflation, rising interest rates, more selective investor appetite, and widespread domino effects from the war in Ukraine.

Despite the general downturn in M&A activity observed in Q2, the market is by no means frozen; buyers are still out there and looking for high quality opportunities. Companies with proven resilient business models in the face of challenging macroeconomic conditions are prime targets for acquisition. Moreover, even though PE investors are not immune to instability, their presence in the M&A market is expected to remain strong.

Jurgis V. Oniunas, IMAP Chairman, commented:

"The M&A boom recorded in the past few quarters has been suddenly overshadowed by record high inflation, rising interest rates, and fears of recession. Energy and food price increases are a danger to the stability of developing markets. Global stock market valuations are off 20-30% from their cycle highs and are showing no signs of an imminent recovery. Yet despite this difficult environment, IMAP advisors continue to close successful deals for clients around the world!”

Read the full summary and IMAP Partner Local M&A Insights in the report below.