2023 M&A Annual Review 1 M&A activity in 2023 was subdued, as dealmakers grappled with geopolitical tensions, inflation, rising interest rates, and increasing regulatory scrutiny, against a backdrop of general economic uncertainty. Challenges in the U.S. banking sector in the early part of the year also took their toll. But deals got done. While the total value of deals fell by about 23%,1 to the lowest level since 2013, the number of deals fell by 16%, reflecting a focus on smaller deals. Some sectors stood out: tech, while down from prior years, continued its strong run, as artificial intelligence (AI) and other emerging technologies created market buzz, and oil and gas in Q4 edged out tech, by value, for the first time in recent memory, thanks in part to two blockbuster transactions. In Q4, the M&A market showed some signs of recovery. Big-ticket ($2 billion+) deals hit their highest levels since Q2 2022, and five of the year’s 10 largest global deals were announced. Further clarity on, if not resolution of, some of 2023’s challenges may lift M&A in 2024 as companies seek to implement growth, earnings, and valuation strategies. In this section of our 2023 M&A Annual Review, we review the M&A markets in 2023 and the major legal and regulatory trends affecting deals in 2024. All data are as of December 15, 2023 and courtesy of Mergermarket, except as otherwise indicated. 1
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