M&A activity decreased further in the second quarter of 2023. Higher interest rates, tighter credit availability, and general economic uncertainty continue to pose headwinds for dealmaking across sectors.

The financial services industry saw another drop in volume as companies focused on core business strategy. Private equity activity also slowed further as financing costs remained high.

Despite the persistent challenges facing the M&A market, there is cautious optimism that activity could pick up as firms look to capitalize on lower valuations and financial sponsors seek to deploy significant dry powder.