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 challenging reading, with economic headwinds of last year clearly 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 risk grows in difficult times. 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 that same founder is often the chief account manager, looking after the key accounts.
“In good times in M&A that always carries a risk of accelerated customer attrition once the deal is closed, but in tougher times, and if you’re not smart in M&A execution, that attrition risk can accelerate even further leaving you heavily exposed.
“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, M&A brings huge benefits to many stakeholders and the wider British economy, and I expect to see the market start to return to 2021 levels as the year progresses.”