No Match Found
Overall engineering and construction (E&C) M&A activity slowed in the first half of 2023 largely due to continued uncertainty in the economy along with recent bank runs, which further pressured a challenging financing market. Conversely, corporate profits are running above historical norms with expectations dependent on continued price increases even as a slower economy contributes to weaker volumes and input costs remain high.
A recovery in the sector’s M&A activity in the second half of 2023 will likely require improved confidence in the economy and more stable financing. There’s also an anticipated increase in divestitures as the sector’s corporates continue to raise capital to fund growth. Private equity is largely dependent upon a debt market recovery and (potentially) lower valuation multiples. Investors needing to deploy dry powder may find and capture take-private opportunities, including those companies that were part of the wave of post-COVID IPOs.
Companies face markets being reshaped by technology and disrupted by geopolitical unrest, a global pandemic and economic shocks. As a result, CEOs are turning to transformative acquisitions to reposition and reinvent their businesses for long-term success. Companies are also beginning to crack the code on how to make big, transformative deals successful: leveraging experience, early and sustained investment in integration, and a commitment to creating and implementing new long-term operating models.
Learn more about leading practices and transformational mindsets in PwC’s new M&A integration report.
“Despite a choppy deals market and continued uncertainty of a recession, focused buyers and sellers with market and industry conviction along with a clear, strategic M&A thesis can expect to be able to execute on accretive Deals.”