{"id":39724,"date":"2023-02-14T12:10:11","date_gmt":"2023-02-14T09:10:11","guid":{"rendered":"https:\/\/saudishopper.com.sa\/en\/?p=39724"},"modified":"2026-03-28T02:46:39","modified_gmt":"2026-03-27T23:46:39","slug":"bain-companys-global-ma-report-sees-opportunity-for-bold-moves-in-an-uncertain-2023-market","status":"publish","type":"post","link":"https:\/\/saudishopper.com.sa\/en\/bain-companys-global-ma-report-sees-opportunity-for-bold-moves-in-an-uncertain-2023-market\/","title":{"rendered":"Bain & Company\u2019s Global M&A Report sees opportunity for bold moves in an uncertain 2023 market<\/strong>"},"content":{"rendered":"\n

Bain\u2019s fifth annual Mergers &Acquisitions Report examines the ups and downs in 2022 and what to expect in 2023<\/em><\/p>\n\n\n\n

DUBAI, UAE<\/strong> \u2013 February 14th<\/sup>, 2023<\/strong> \u2013 Bain & Company\u2019s 5th annual Global Mergers & Acquisitions Report publishes a report which reveals that corporate executives looking ahead to 2023 remain confident in M&A\u2019s role in value creation. While M&A value dropped dramatically in 2022 \u2013 a loss of 36% in deal value \u2013 Bain\u2019s report confirms that deal activity continues to be a central corporate strategy for growth and profitability.<\/p>\n\n\n\n

The report points to a survey of nearly 300 M&A executives, conducted by Bain in October 2022, who anticipated closing a similar number of deals, if not more, in the year ahead. The survey expressed confidence in the ability of M&A deals to create value, reporting that nearly two-thirds of acquisitions completed in the previous three years have met or exceeded expectations.<\/p>\n\n\n\n


Focusing on the Middle East, Bain & Company explores how sovereign wealth funds are using M&A to transform economies in the region. With a strong economy buoyed by high oil prices, the Middle East is well positioned to rely on M&A to further advance the region\u2019s long-term push to expand beyond hydrocarbons as well as help globalize its companies. <\/p>\n\n\n\n

Most of the deal activity is fueled by sovereign wealth funds and local corporations, with the potential for foreign investors to start deploying capital in the region. The expected regional GDP growth of 6.5%, the highest it\u2019s been in more than a decade. The Middle East\u2019s sovereign wealth funds are growing too. For example, Saudi Arabia\u2019s state-owned Public Investment Fund (PIF) invested $1.3 billion in four Egyptian companies in August 2022, including Abu Qir Fertilizers and Alexandria Container and Cargo Handling.<\/p>\n\n\n\n

Bain\u2019s research shows that strategic deal value declined more quickly than strategic deal volume. Median strategic deal multiples fell to a 10-year low of 11.9x in 2022, off an all-time high in 2021. The decline in deal multiples, coupled with a mid-year pause of mega-deals, explains the relatively large drop in deal volume versus activity. The largest drops came among deals for Technology and Healthcare & Life Sciences assets.<\/p>\n\n\n\n

The recent history of economic downturns supports confidence in M&A strategy, as it is an excellent opportunity for buyers to make bold moves. Assets are cheaper than they have been in years, and opportunities exist to strengthen core business or create strategic options via scope deals.<\/p>\n\n\n\n

\u201cMergers and acquisitions in the Middle East have very specific dynamics\u201d said Gregory Garnier, Partner, Bain & Company Middle East. \u201cRegional SWFs play an increasing role in transforming the regional economy, they use M&A as a strategic lever and have dominated the recent deal flow in the region. SWFs use M&A with strategic intent to enter new verticals, strengthen ties with partners, invest in industries of the future, increase global visibility or build\/strengthen local champions. There are though plenty of investment opportunities for other local and global investors in the region, which is fueled by a surge of IPOs and an increasing desire from family owned businesses to monetize their assets. This requires having feet on the ground to source proprietary deals and at times to partner with SWFs.\u201d<\/p>\n\n\n\n

Bain analyzed M&A activity of nearly 2,900 companies during the 2008-2009 downturn\u2014and found those who were active in M&A outperformed those that sat on the sidelines. This can be measured in the superior shareholder return of active companies.<\/p>\n\n\n\n

As the market reset, Bain observed unanticipated shifts in dealmaking and, at the same time, the continued persistence of longer-term trends.<\/p>\n\n\n\n

The report identified five M&A themes to watch for in 2023: <\/p>\n\n\n\n