In both 2021 and 2022, we witnessed M&A records in terms of the number and value of Swiss transactions. However, in 2023 dealmakers became cautious, leading to a substantial decline in M&A activity. Valuations experienced a decline until mid-2023 but have since recovered and stood at an EV/EBITDA ratio of 8.9x at the end of the year.

The Swiss State Secretariat for Economic Affairs anticipates modest economic growth of 1.1% in Switzerland in 2024, well below historical averages. Various factors, both long-term and cyclical, contribute to this restrained recovery, including the delayed effects of the pandemic, the conflicts in Ukraine and elsewhere, and their effects on investor sentiment. Additionally, cyclical factors are hindering the recovery, such as the impact of monetary policy tightening to reduce inflation and the withdrawal of fiscal support amid high levels of debt. Despite these challenges, Switzerland is expected to return to a more normal growth rate of 1.7% in 2025.^{2, 3}

The Swiss M&A market shows signs of potential resurgence in 2024, with stakeholders maintaining optimism about forthcoming opportunities. This optimism is driven in part by improving macroeconomic and political conditions, and an end to interest rate uncertainty.

Private equity is also under pressure to become more active, both on the sell-side, divesting long-term assets, and on the buy-side, armed with substantial amounts of "dry powder" for investment. Access to debt financing has improved in recent months, further contributing to the anticipated rebound in private equity activity in 2024.

There is an expected catch-up effect in 2024, involving M&A projects postponed from 2023. Even if only a portion of these materialises, mergers and acquisitions in Switzerland are poised to regain momentum.

In both 2021 and 2022, we witnessed M&A records in terms of the number and value of Swiss transactions. However, in 2023 dealmakers became cautious, leading to a substantial decline in M&A activity. Valuations experienced a decline until mid-2023 but have since recovered and stood at an EV/EBITDA ratio of 8.9x at the end of the year.

The Swiss State Secretariat for Economic Affairs anticipates modest economic growth of 1.1% in Switzerland in 2024, well below historical averages. Various factors, both long-term and cyclical, contribute to this restrained recovery, including the delayed effects of the pandemic, the conflicts in Ukraine and elsewhere, and their effects on investor sentiment. Additionally, cyclical factors are hindering the recovery, such as the impact of monetary policy tightening to reduce inflation and the withdrawal of fiscal support amid high levels of debt. Despite these challenges, Switzerland is expected to return to a more normal growth rate of 1.7% in 2025.^{2, 3}

The Swiss M&A market shows signs of potential resurgence in 2024, with stakeholders maintaining optimism about forthcoming opportunities. This optimism is driven in part by improving macroeconomic and political conditions, and an end to interest rate uncertainty.

Private equity is also under pressure to become more active, both on the sell-side, divesting long-term assets, and on the buy-side, armed with substantial amounts of "dry powder" for investment. Access to debt financing has improved in recent months, further contributing to the anticipated rebound in private equity activity in 2024.

There is an expected catch-up effect in 2024, involving M&A projects postponed from 2023. Even if only a portion of these materialises, mergers and acquisitions in Switzerland are poised to regain momentum.