Following Rupert Murdoch’s recent announcement which saw plans to merge Fox and News Corps called off, M&As continue to encounter resistance when securing shareholder confidence in the current economic climate. Reportedly, the media mogul said his decision “is not optimal for shareholders of News Corp and FOX at this time”, indicative of the apprehension being experienced across boardrooms and investors throughout the past year.

Data compiled by Bloomberg found that over $150 billion worth of potential M&As have either been scrapped or stalled dating back to the start of June 2022. The significant drop in deals was the result of repeated increases in interest rates, causing valuations to down spiral, particularly for certain fast-growing companies that no longer have access to cheap capital.

M&A expert and CEO of business advisory, Claire Trachet highlights that in order for these deals to be successful, shareholder and boardroom confidence must remain strong, which continues to be difficult during the current economic climate. Despite this, there is great potential for the UK market to stabilise quicker than expected, with interest rates set to decrease and inflation beginning to subside.

According to a study by PWC, 64% of CEOs in tech, media and telecommunications stated they are not planning to suspend deals in 2023. Although it is still early to forecast socioeconomic developments throughout the year, opportunities in M&A are likely to continue increasing.

Claire Trachet, CEO of Trachet, is also available to discuss:
The challenges that founders will face in trying to scale up over the next 18 months
The evolving nature of the startup arena for the UK
Her experience in providing proper structure to scale-ups looking to finance or exit