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{"id":22061,"date":"2022-12-16T17:23:08","date_gmt":"2022-12-16T11:53:08","guid":{"rendered":"https:\/\/thecorporatemagazine.com\/?p=22061"},"modified":"2022-12-20T12:23:01","modified_gmt":"2022-12-20T06:53:01","slug":"recession-is-worried-it-could-start-a-lipstick-effect-on-deal-activity-in-the-coming-year","status":"publish","type":"post","link":"https:\/\/thecorporatemagazine.com\/recession-is-worried-it-could-start-a-lipstick-effect-on-deal-activity-in-the-coming-year\/","title":{"rendered":"Recession is worried it could start a ‘lipstick’ effect on deal activity in the coming year"},"content":{"rendered":"\t\t

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Recession is worried it could start a 'lipstick' effect on deal activity in the coming year<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t $\"Recession$ \t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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December 16, 2022: -The volume and size of mergers and acquisitions experience a significant downfall in 2022 as macro headwinds decrease the global market.<\/p>
For the initial time in more than three years, there were no mega agreements valued at more than $10 billion in the third quarter, according to the recent M&A report by Willis Towers Watson.<\/p>
The 49 significant agreements valued more than $1 billion in the quarter, with 67 essential contracts closing in a similar period before a year.<\/p>
Despite global slump fears, geopolitical tensions and anticipations for inflation and interest rates to keep increasing in 2023, WTW predicts dealmaking activity will keep going.<\/p>
“An unprecedented item of disruptive force making headwinds for dealmakers, but opportunities,” Massimo Borghello, human head capital M&A which consults Asia Pacific at WTW, said.<\/p>
“The fundamentals driving dealmaking are in place and, with valuations moderating following the historic levels acquired in 2021, strategic and financial buyers much similar will take advantage of better-priced opportunities for the development.”<\/p>
Willis Towers Watson predicted slump fears could trigger a “lipstick” effect next year, where buyers focus on smaller instead than big-ticket deals.<\/p>
The challenging operating environment is driving companies to sell off non-core assets, WTW said. For instance, energy firms could continue to divest carbon-intensive assets.<\/p>
“This can make opportunities for buyers expanding product lines, services or supply chains at a decreased rate,” the report said.<\/p>
The tech sector could see a level of acquisitions in the AI and machine lesson markets with the need for race in digital transformation across all factories.<\/p>
Persistent, pandemic-era supply chain disruptions could drive the firm to look to M&A to improve operational resilience.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t Next<\/span>Retired Twitter employee convicted to more than three years in prison to spy for Saudi Arabia<\/span><\/span>