What is the forecast for M&As in 2024?

The report shows that UK deals decreased by 17%, compared to 6% globally and acquisition risks highlight uncertainties for the rest of the year.

While economic challenges persist, businesses need to be strategic with their M&As for sustained success in the evolving business landscape.

Matt Parker, CEO of Babble said, “PwC’s 2023 M&A report makes for sombre reading, with economic headwinds of last year spooking dealmakers across the UK. The 17% decrease in deals is especially stark when compared to the 6% decrease globally.

“Babble has long been named as one of the UK’s most acquisitive companies. This approach has allowed us to grow at an accelerated rate, whilst also boosting customer satisfaction by providing a larger range of products and services.

“But M&As come with risk and this risk has been felt more over the past year. For example, the type of business we acquire is an SMB where the founder has put in years of hard work to create a strong offering, but the founder is the business’ IP. That can leave us vulnerable to customer attrition, which we always want to avoid, particularly during tougher economic periods.

“As I look ahead to 2024 I know this year will be tricky to navigate. We’re already experiencing geopolitical and economic challenges and a General Election will naturally cause further uncertainty. But, I know the huge benefits M&A can bring to a variety of stakeholders and the wider British economy, so hope to see the market start to return to 2021 levels.”