Fears of a recession could have a 'lipstick' effect on deal activity next year.

By The Exchange Team

As macro headwinds weighed down the global economy, mergers and acquisitions decreased significantly this year.

The latest Willis Towers Watson M&A report found no mega deals exceeding $10B in the 3rd quarter for the 1st time in over 3 years.

Compared to 67 significant agreements in the same quarter a year earlier, 49 were over $1 billion.

WTW expects dealmaking to continue in 2023 despite global economic fears, geopolitical tensions, and rising inflation and interest rates.

 "An unprecedented amount of disruptive forces have generated headwinds for dealmakers, but they are also providing opportunities.", said Massimo Borghello.

Towers Watson projected a "lipstick" impact next year, where buyers prioritise smaller agreements over huge ones due to economic fears.

WTW claimed corporations will sell non-core assets due to the tough operating climate. Energy companies could sell carbon-intensive properties.