Firmex Announces the Publication of Q2 2023 Deal Flow Bulletin
The Q2 2023 Firmex Deal Flow Bulletin uses virtual data room activity to forecast the volume of deals for Q2 2023. It also presents advisor sentiment on the current M&A market and expectations for the year ahead.
TORONTO, May 5, 2023 /PRNewswire-PRWeb/ -- Firmex®, one of the most widely used providers of virtual data rooms, announced the publication of the Firmex Deal Flow Bulletin™ for Q2 2023. This report combines proprietary data on virtual data room activity with M&A advisor interviews to forecast deal activity for the second quarter. In addition, to deal flow, the bulletin also highlights M&A advisor sentiment on the deal landscape for Q2 and beyond, given the challenges in the current market.
"Dealmakers report facing new challenges to closing deals, but they remain positive in their outlook and ready to adapt," said Mark Wright, General Manager of Firmex. "And overall, there seems to be a return to normal."
Highlights in the Q2 2023 Deal Flow Bulletin include:
- More than half of middle-market merger advisors surveyed (55%) feel positive about the M&A market overall, a slight increase from three months ago.
- M&A activity is projected to pick up in Europe, based on an analysis of virtual deal room activity on the Firmex platform. Firmex projects that 6% more European deals will be announced in the second quarter of 2022 than in the first quarter.
- European merger advisors agree, more than half (54%) expect volume to increase this quarter.
- The picture is more mixed in North America, where Firmex projects volume to decline by 2%.
- Advisors in North America are split about prospects for the second quarter, with 36% predicting increased volume and 29% expecting deal flow to decline.
- Valuations have returned to normal levels from the highs of 2021. Only one in five advisors say values are below average, but that's an increase from previous surveys.
- In North America, three in five advisors expect valuations to fall over the next three months. In Europe, 37% say values will go lower, and 30% say they will rise.
- A recession within the next year seems likely to 61% of advisors in North America and 44% of those in Europe.
- Dealmaking is getting harder, with debt financing becoming scarcer and deals taking longer to close.
- Advisors are compensating by working more earnouts and other contingent provisions into merger agreements.
To read the Firmex Deal Flow Bulletin for Q2 2023, visit firmex.com.
About Firmex
Firmex is a global provider of virtual data rooms and secure document-sharing solutions. As one of the world's most widely used virtual data rooms, Firmex supports complex processes for organizations of all sizes, including diligence, compliance, and litigation. Whenever professionals need to share sensitive documents beyond the firewall, Firmex is their trusted partner. A Firmex subscription provides simple, safe, and stress-free document sharing without hidden costs or complexity. Since 2006, Firmex has helped over 120,000 companies worldwide take control of their confidential documents. For more information, please visit http://www.firmex.com.
Media Contact
Edward Stephen, Firmex, 1 416-840-4241, [email protected]
SOURCE Firmex
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