Report: M&A Advisors Anticipate Active Year, Decreased Valuations

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Firmex® Announces Publication of Q1 2023 Deal Flow Bulletin™

More than half of M&A advisors expect deal volume to increase in 2023, according to a new report from Firmex, one of the most widely used providers of virtual data rooms. This positivity persists despite nearly half of advisors (43%) expecting valuations to decrease, while more than half 57% expect valuations to stay the same (36%) or increase (21%).

Firmex’s Q1 2023 Deal Flow Bulletin combines proprietary data on virtual data room activity and survey responses from middle-market M&A professionals to develop a quarterly outlook. Based on this modeling, Firmex predicts a 17% increase in North American deal announcements in Q1 of 2023 compared to Q4 of 2022.

“All signs indicate a strong Q1, whether you base this on our newly refined projection model, the feedback we’ve had from industry leaders, or a combination of both,” said Mark Wright, General Manager of Firmex. “M&A advisors are confident in their success rates and about the market in general despite concerns about decreased valuations and access to financing.”

Key highlights in the Q1 2023 Deal Flow Bulletin include:

  • Looking back at 2022: 40% of M&A advisors say their deal volume in 2022 was better than average, compared to 30% who said it was below average.
  • Sellers are on the rise: 60% of advisors expect the number of sellers in the market to increase in 2023, a sharp uptick from just 25% at this time last year.
  • Market sentiment is favorable: more than half (50%) of advisors say they feel positive about the market in 2023, compared to just 13% who view it unfavorably.
  • Spotlight on healthcare: 60% of M&A advisors active in the healthcare space expect healthcare deals to increase in 2023, compared to just 23% who expected increased activity in 2022.

To read the Firmex Deal Flow Bulletin for Q1 2023, visit

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