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.

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.