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Immobiliare news | BCG, M&A: 83% drop in deals in Italy in 9M 2023 | MonitorImobiliare

Immobiliare news | BCG, M&A: 83% drop in deals in Italy in 9M 2023 | MonitorImobiliare

Immobiliare news | BCG, M&A: 83% drop in deals in Italy in 9M 2023 | MonitorImobiliare
Immobiliare news | BCG, M&A: 83% drop in deals in Italy in 9M 2023 | MonitorImobiliare

The current geopolitical instability and uncertainty in the macroeconomy are negatively affecting global M&A deals, and our country is no exception.

In the first nine months of the year, deal value in Italy fell 83% to stop at $16 billion. This figure is significantly worse than the average for Europe, where the decline amounted to 55%.

The total value of global M&A activity fell 39% between June and September to $1.324 trillion, with a 15% drop in the number of deals. The data comes from Boston Consulting Group's latest report on the state of global M&A deals.

But according to the report, 'the worst is probably already''behind us' as "recovery indicators have been rising in recent weeks and negotiators are back at the table.

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According to the BCG report, the drop in Italy is due to the lack of mega-deals, i.e., deals worth more than $10 billion that pushed deal volumes to record levels in 2022 and especially in 2021.

The report points out, however, that three major factors - rising interest rates, geopolitical tensions and recession fears - are having a negative impact on the overall economy, leading to a "divergence between sellers' price expectations and buyers' opportunities. "

Now that interest rates seem to be approaching peak levels, this divergence''s shrinking, fueling interest from private equity funds and large companies, which together have amassed more than $12 trillion in cash.

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