Finance Monthly. 6 THE MONTHLY ROUND-UP News You Can’t Afford to Miss The Monthly Round-Up QUARTERLY ONS STATS SHOWING A DECREASE IN M&A TRANSACTIONS IN Q2 Chris Goodgame, Managing Director in Alvarez and Marsal’s Transaction Advisory practice commented: “This morning’s data showing a marginal decrease in cross-border and domestic M&A activity, with 58 transactions fewer than the 508 in Q1, suggests that doubts about the economy may still linger, despite inflation beginning to ease. Valuation dislocations, higher debt financing costs and growing risk aversion amid an uncertain outlook have hampered dealmaking activity following last year’s slump, and larger transactions remain few and far between. These complex and higher-stake deals demand alignment between several different parties and a level of conviction from buyers that is currently lacking in the market, which has already led to several failed processes. Looking ahead to the rest of the year, it remains unclear whether an uptick in deal flow will materialise in the coming months. The market is seemingly waiting for a catalyst to restart activity, the key question being what this catalyst is. However, there are indeed some signs of improvement on the macroeconomic front, with inflation beginning to stabilise suggesting the end of the rate hiking cycle is in sight. It remains to be seen whether this will be sufficient to release the pent-up demand for M&A that has been building over the past nine to twelve months.”
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