1、Private Equity&Transactions 2023OC&C deal activity at a glanceuncommon senseTM02|OC&C Private Equity&Transactions 20232023 deal activity at a glanceIf 2021 was the all-time deal-making peak and 2022 brought instability and macro-economic tempests,what did 2023 bring?Inflation was generally more pern

2、icious than most had expected,and interest rates rose significantly in most countries throughout the first part of 2023,raising the cost of debt.Combined with economic uncertainty,this made buyers much more selective on what assets they looked at and cautious on valuations on those opportunities the

3、y did pursue.Consequently,completed deal activity across the market in H1 23 was well below that of the same period the previous year and remained muted for the rest of 2023.Yet,we also see investors adapting to the changed deal-making environment.Buyers are focusing on high quality assets with stro

4、ng fundamentals(an important precursor to get past the higher levels of scrutiny from investment committees)and placing greater emphasis on profitability rather than a sole focus on growth.And while the macroeconomic environment may have not got much easier,investors have got greater clarity on how

5、these dynamics are playing out and the implications for potential investments.On the sell-side,we are seeing a greater focus on better and earlier exit preparation to build and prove more robust value creation plans and to give options and flexibility on the timing and nature of exits.In a world tha

6、t has been so uncertain and unstable over the last few years,wed be cautious on making bold predictions for 2024 geopolitics,the many national elections taking place this year and the future development trajectory of AI all inject substantial uncertainties into the outlook.But there are perhaps some