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M&A Insights: Subdued transaction activity in H1 2022

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PwC Study 2022: Difficult geopolitical situation influences M&A market in DACH region

  • Published by:

    PwC Germany

  • Language:

    English

Geopolitical and economic uncertainty influences M&A activity

Compared with H2 2021, fewer mergers and acquisitions took place in Germany, Austria and Switzerland in H1 2022. The number of transactions decreased by 23.8% from 1,884 to 1,436. 

The transaction value fell by 34.8% from €107.4 billion to €67.3 billion. This was due to high inflation, more difficult transaction financing and interrupted supply chains as a result of the Russia-Ukraine war, which caused uncertainty and volatility on the markets. Despite all this, transaction volumes are higher than in H1 2020 and previous years.

Overall, the outlook for M&A activity remains favorable despite adverse circumstances. An increase in private equity deals is expected due to plenty of available capital. The pandemic has also created an awareness among companies of changes in the areas of digitalization, ESG and value creation, which is driving transaction activity significantly.

1.436

Mergers and acquisitions occurred in the DACH region in H1 2022

34%

of M&A activity took place in the Technology, Media & Telecommunications sector

47Mio. €

the transaction value amounted to an average

74%

of the deals were in Germany, 19 % in Switzerland and 7 % in Austria

Uncertainties due to the geopolitical situation influenced M&A activities in the DACH region. Nevertheless, transaction volumes remain high - especially in the technology industry.

Steve Roberts

Private Equity Leader Germany & EMEA, PwC Deutschland

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