BDO Horizons Q4 2023: Key Insights
Mid-Market M&A Activity: The report indicates that M&A activity has returned to pre-COVID levels, with private equity continuing to be a significant player. Despite economic challenges like inflation and fiscal policy changes, the M&A landscape is still robust.
Sector Focus: The edition provides a detailed analysis of sectors such as Real Estate, Natural Resources, TMT (Technology, Media and Telecom), and Supply Chain & Logistics, highlighting trends and future expectations.
Circular Economy: A lead article emphasizes the economic benefits of transitioning to a circular economy, which could yield up to USD 4.5 trillion globally by 2030. The report suggests that companies with circular models present lower risks and potentially higher returns.
Global Corporate Finance: BDO maintains a strong position in global corporate finance, being recognized as a leading financial advisor and active in cross-border deals.
Regional Deal Activity: Every region except Australasia saw a decline in deal activity in Q3 2023, with North America and Greater China experiencing significant drops. However, the overall outlook is still positive with nearly 9,000 rumored transactions indicating a vibrant future for M&A activity.
Investment Trends: The report notes a shift in investor attitudes towards ESG and the Circular Economy, recognizing long-term value creation opportunities. Over 20% of the world's largest companies have net-zero commitments, which may drive M&A activity as they seek innovative circular businesses to meet these targets.
Challenges and Opportunities: While the momentum behind the Circular Economy is strong, early-stage businesses in this area often struggle to raise the necessary investment. Entrepreneurs are encouraged to focus on clear commercial growth plans and the competitive edge of their products or services.
The full report covers more in-depth analysis and insights, which can be crucial for stakeholders in the mid-market M&A space.
Source: BDO Global
