2023 Business Leader and Investor Survey

Our ambitious aim from the outset of the survey was to try and understand the perspective of Israeli business leaders, investors and other sponsors in respect of:

•       Market confidence and the outlook for Israeli businesses.

•       Sentiments towards M&A in 2023

•       Current restructuring and divestiture attitudes.

Ongoing market uncertainty caused by a perfect storm of economic and geopolitical factors, has in turn adversely impacted the volume of M&A deals. IPOs both in Israel, the US and the UK have declined as valuations are not reaching previous highs and SPACs that have failed to acquire assets are beginning to feel deadline pressures to refund investors.

In addition, based on the rising interest rates coupled with increasing costs, inflationary pressures and supply chain concerns, we would anticipate that there will be increased numbers of financial restructurings, both in Israel and globally as we enter 2023.

Main report findings include:

· Increased market uncertainty driven by inflation and political factors.

· Reduced optimism and a focus on cash and organic expansion rather than prioritizing M&A and cost cutting.

· Whilst corporates are primarily focusing on defensive M&A strategies, investors appear committed to more offensive plays

· A decrease in investors eagerness to peruse M&A deals when compared to past years, while 46% of business leaders indicate they will pursue such deals this year.

· Business leaders’ main concerns for 2023 were global recession and political uncertainty. Talent departure - a major concern in recent years doesn’t seem to be an issue. 

Get the full report here