Analysis of the Mergers and Acquisitions market in Spain for 2023

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The year 2023 was the scene of a number of changes and challenges in the Spanish mergers and acquisitions (M&A) market. According to TTR’s annual report, a total of 3,032 M&A transactions were carried out, with a combined value of €91,121 million. These figures reflect a 7% decrease in the number of deals compared to the previous year, as well as a slight drop of 1% in terms of amounts.

The observed market slowdown can largely be attributed to the political instability and geopolitical tensions that marked the year 2023 globally (war in Ukraine, Israel/Palestine conflict, etc.). The political uncertainty generated a volatile economic environment, which may have greatly affected investor confidence and led to widespread caution in investment decisions.

Despite the challenges, some sectors managed to stand out in the M&A landscape. The real estate sector topped the list with 663 transactions, followed closely by the internet, software and services sector, which recorded a total of 379 transactions. These results may suggest that, despite adverse conditions, certain sectors maintained notable activity in the M&A market.

In terms of the origin and destination of Spanish investments, interesting patterns were observed. Portugal, the United States and the United Kingdom stood out as the main destinations chosen by Spanish companies, with 83, 63 and 42 transactions respectively. On the other hand, the United States, the United Kingdom and France were the countries that invested the most in Spain, with 219, 153 and 148 transactions respectively.

These data illustrate the diversity and breadth of M&A activity both inside and outside Spain. Despite challenging economic and political conditions, Spanish companies continue to seek opportunities for growth and expansion in foreign markets, while at the same time attracting investors from various parts of the world.

In summary, the M&A market in Spain during 2023 was marked by a decline in activity, mainly driven by geopolitical instability and economic uncertainty. However, specific sectors showed resilience, and international M&A activity evidenced the perseverance and interest of Spanish companies in expanding their operations beyond national borders.

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